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a) 3.51% and b) 2.70% is incorrect help! Sunrise, Incorporated, is trying to determine its cost of debt. The firm has a debt issue outstanding

a) 3.51% and b) 2.70% is incorrect help!

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Sunrise, Incorporated, is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is quoted at 105 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually. a. What is the company's pretax cost of debt? (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 23 percent, what is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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