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Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.8% and a yield to ma
Posted: Sun Jul 03, 2022 6:42 am
by answerhappygod
- Intro Simple Corp Has One Bond Issue Oustanding With A Maturity Of 10 5 Years A Coupon Rate Of 3 8 And A Yield To Ma 1 (46.68 KiB) Viewed 15 times
Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.8% and a yield to maturity of 4.7%. Simple Corp.'s average tax rate is 18% and its marginal tax rate is 34%. Part 1 What is the (pre-tax) cost of debt? 4.7% Correct ✔ The pre-tax cost of debt equals the yield to maturity on a bond, or 0.047 in this case. Part 2 What is the after-tax cost of debt? + decimals Submit Attempt 1/10 for 10 pts. B Attempt 1/10 for 10 pts.