Question
Intro Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.4% and a yield to maturity of
Intro
Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.4% and a yield to maturity of 4.6%.
Simple Corp.'s average tax rate is 18% and its marginal tax rate is 31%.
Attempt 1/5 for 10 pts.
Part 1
What is the (pre-tax) cost of debt?
Submit
Attempt 1/5 for 10 pts.
Part 2
What is the after-tax cost of debt?
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Capital Markets Institutions And Instruments
Authors: Frank J. Fabozzi, Franco Modigliani
4th Edition
0136026028, 9780136026020
