Intro

Lugget Corp. has one bond issue outstanding with an annual coupon of $3\mathrm{.}9\%,$ a face value of $$1,000$ and a price of $$1,076\mathrm{.}77,$ which matures in $10$ years. The company's tax rate is $33\%.$

Part $1$

Attempt $\frac{2}{10}$ for $0\mathrm{.}9$ pts$.$

What is Lugget's pre$-$tax cost of debt?

$4+$ decimals

Part $2$

Attempt $\frac{1}{10}$ for $0\mathrm{.}9$ pts$.$

What is the company's after$-$tax cost of debt?