Question: Tomtom Co . issued a 1 0 - year bond, with a coupon of 5 % , making semiannual payments and a par value of

Tomtom Co. issued a 10-year bond, with a coupon of 5%, making semiannual payments and a par value of $1,000. The bond currently sells for 103% of par. The company's tax rate is 21%.
a.) Calculate the before-tax cost of debt. (Enter percentages as decimals and round to 4 decimals)
b.) Calculate the after-tax cost of debt. (Enter percentages as decimals and round to 4 decimals)

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