Question: can someone help me with this practice problem i do not understand it Avicorp has a $10 2 million debt issue outstanding, with a 6.2

can someone help me with this practice problem i do not understand it

Avicorp has a $10 2 million debt issue outstanding, with a 6.2 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 93% of par value a. What is Avicorp's pre tax cost of debt? Note Compute the effective annual return b. If Avicorp faces a 40% 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 per year. (Round to four decimal places

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