5 10 points Sunrise, Incorporated, is trying to determine its cost of debt. The firm has a debt issue outstanding with 9 years to maturity that is quoted at 110 percent of face value. The issue makes semiannual payments and has an embedded cost of 7.8 percent annually. 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., 32.16. b. If the tax rate is 22 percent, what is the aftertax cost of debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. a. Pretax cost of debt b. Aftertax cost fo debt 5.60 X % 4.26 %

Sunrise, incorporated, is trying to determine its cost of debt. The firm has a debt issue outstanding with 9 years to maturity that is quoted at 110 percent of face value. The issue makes semiannual payments and has an embedded cost of 78 percent annually 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.9., 32.16. b. If the tax rate is 22 percent, what is the aftertax cost of debt? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.9., 32.16. Sunrise, incorporated, a trying to determine its cost of debt. The fem has a debt issue outstanding with 9 years to maturity that is quoted at 110 percent of fibce value. The issue makes semignnual poyments and has an egrbedded cost of 78 percent annually a. What is the company's pretax cout of debt? Note: Do not round intermediate calculations and enter your antwer as a percent rounded to 2 decimal places, e.9, 32.16 . b. If the tax rate is 22 percent, what is the aftertax cost of debi? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimat places, e.9. 32.16