Question: Avicorp has a $ million debt issue outstanding, with a coupon rate. The debt has semi-annual coupons, the next coupon is due in six months,

Avicorp has a $ million debt issue outstanding, with a coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at of par value. a. What is 's pretax cost of debt? b. If faces a tax rate, what is its after-tax cost of debt? Note: Assume that the firm will always be able to utilize its full interest tax shield. Question content area bottom Part 1 a. The cost of debt is enter your response here% per year.(Round to two decimal places.)

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