Question: Please show work! PLEASE HELP! P 1 3-5 (similar to) Question Help * Avicorp has a $13.1 million debt issue outstanding, with a 5.9% coupon

Please show work! PLEASE HELP!

P 1 3-5 (similar to) Question Help * Avicorp has a $13.1 million debt issue outstanding, with a 5.9% 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 95% 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? a. The cost of debt is | % per year. (Round to four decimal places.)

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