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P14-6 Calculating Cost of Debt (LO2] Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 11 years to maturity that is quoted at 104 percent of face value. The issue makes semiannual payments and has an embedded cost of 4 percent annually. What is the company's pretax cdst of debt? O 3.56% 4.27% O 2.31% O 3.91% O 3.20% If the tax rate is 35 percent, what is the aftertax cost of debt? O 2.31% O 2.08% 2.54% O 3.24% O 3.56%