Problem $12-6$ Calculating Cost of Debt $[$LO$2]$

$2$

Jiminy's Cricket Farm issued a $30-$year, $5$ percent semiannual coupon bond $3$ years ago. The bond currently sells for $94$ percent of its points face value. The company's tax rate is $22$ 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$.,32\mathrm{.}16.$

b$.$ What is the company's aftertax cost of debt?

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Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

$\backslash$table$[[$a$.$ Pretax cost of debt,$\%$