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Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.7% and a yield to maturity of 5.9%

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Simple Corp. has one bond issue oustanding, with a maturity of 10.5 years, a coupon rate of 3.7% and a yield to maturity of 5.9% Simple Corp.'s average tax rate is 18% and its marginal tax rate is 32%. IB Attempt 1/8 for 10 pts. Part 1 What is the (pre-tax) cost of debt? 3+ decimals Submit IB Attempt 1/8 for 10 pts. Part 2 What is the after-tax cost of debt? 4+ decimals Submit

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