AvicorpAvicorp has a $$$$13\mathrm{.}313\mathrm{.}3$ million debt issue$$ outstanding, with a $6\mathrm{.}1\%6\mathrm{.}1\%$ 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 $94\mathrm{.}69\%94\mathrm{.}69\%$ of par value. a$.$ What is AvicorpAvicorp$\text{'}$s pretax cost of$$ debt? b$.$ If AvicorpAvicorp faces a $28\%28\%$ tax$$ 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.$)$ Avicorp has a $\backslash (\backslash$$ $13\mathrm{.}3\backslash )$ million debt issue outstanding, with a $\backslash (6\mathrm{.}1\backslash \%\backslash )$ 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 $\backslash (94\mathrm{.}69\backslash \%\backslash )$ of par value.

a$.$ What is Avicorp's pretax cost of debt?

b$.$ If Avicorp faces a $\backslash (28\backslash \%\backslash )$ 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.

a$.$ The cost of debt is $\backslash \%$ per year. $($Round to two decimal places.$)$