Question: Please explain by Excel STL City SC, Inc has two issues of debt outstanding. One is a 9% coupon bond with a face value of

Please explain by Excel

STL City SC, Inc has two issues of debt outstanding. One is a 9% coupon bond with a face value of $20 million, a maturity of 10 years, and yield to maturity of 10%. Coupons are paid annually. The other bond issue has a maturity of 15 years, with coupons also paid annually, and a coupon rate of 10%. The face value of the issue is $25 million, and the issue sells for 94% of par value. The firm's tax rate is 21%. a. What is the pretax cost of debt? b. What is the after-tax cost of debt?

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