Question: Please give the answer without using excel. 7. Calculating Cost of Debt (LO3) Pearce's Cricket Farm issued a 30-year, 7% semiannual bond 3 years ago.

Please give the answer without using excel.

7. Calculating Cost of Debt (LO3) Pearce's Cricket Farm issued a 30-year, 7\% semiannual bond 3 years ago. The bond currently sells for 93% of its face value. The company's tax rate is 35%. Assume the par value of the bond is $1,000. a. What is the pre-tax cost of debt? b. What is the after-tax cost of debt? c. Which is more relevant, the pre-tax or the after-tax cost of debt? Why

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