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Flotation costs and the cost of debt in March of 2020 PepsiCo, Inc. (PEP) sold $750 million worth of 40-year 4.25% coupon bonds that pay semi-annual interest. At the time the bonds were issued, the market paid $994.11 per bond and the flotation cost was $18.25 per bond. Pepsis corporate tax rate is 21% a. Ignoring flotation costs, what is Pepsi's before-tax and after-tax costs of debt? b. Considering flotation costs, what is Pepsi's before-tax and after-tax costs of debt? a. Ignoring flotation cost. Pepsi's before-tax cost of debt is % (Round to two decimal places.) Before and after-tax cost of debt For the following $1,000-par-value bond paying semi-annual interest payments, calculate the before and after-tax cost of debt. Use the 21% corporate tax rate Issuer Name Coupon Rate Years to Maturity Price Oracle Corp. 3.80% 22 $1,008.52 The before-tax cost of debt for Orade Corp. %. (Round to two decimal places.)