Question: iminy s Cricket Farm issued a 2 0 - year, 5 percent semiannual coupon bond 2 years ago. The bond currently sells for 9 6

iminys Cricket Farm issued a 20-year, 5 percent semiannual coupon bond 2 years ago. The bond currently sells for 96 percent of its face value. The companys tax rate is 21 percent. What is the companys pretax cost of debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16. What is the companys aftertax cost of debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16. Jiminy's Cricket Farm issued a 20-year, 5 percent semiannual coupon bond 2 years ago. The bond currently sells for 96 percent of its face value. The company's tax rate is 21 percent.
a. What is the company's pretax cost of debt?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.
b. What is the company's aftertax cost of debt?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.
iminy s Cricket Farm issued a 2 0 - year, 5

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