Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.9% and a yield to ma
Posted: Tue Nov 16, 2021 7:50 am
Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.9% and a yield to maturity of 4.6%. Simple Corp.'s average tax rate is 18% and its marginal tax rate is 29%. IB Attempt 1/10 for 10 pts. Part 1 What is the (pre-tax) cost of debt? 4+ decimals Submit Part 2 What is the after-tax cost of debt? IB Attempt 1/10 for 10 pts. 4+ decimals Submit