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13.J&R Renovation, Inc. is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is

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13.J&R Renovation, Inc. is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is quoted at 95 percent of face value. The issue makes semiannual payments and has a coupon rate of 6.4 percent annually. What is the company's pretax cost of debt? If the tax rate is 35 percent, what is the aftertax cost of debt

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