Personal Finance Problem LG P9-3 Before-tax cost of debt and after-tax cost of debt Simpson Web intends to acquire a bond issued by Orange Group. He has obtained the following information on the security. Bond of Orange Group Coupon interest rate 10% Corporate tax rate 25% Par value Cost $1,000 $1,200 Years to maturity7 a. Calculate the before-tax cost of the Orange Group bond. b. Calculate the after-tax cost of the Orange Group bond given the corporate tax rate