Advance, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 13 years to maturity that is quoted at 90 percent of face value. The issue makes semiannual payments and has a coupon rate of 10 percent annually.

Required: (a) What is Advances pretax cost of debt? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Pretax cost of debt %??

(b) If the tax rate is 37 percent, what is the aftertax cost of debt? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Aftertax cost of debt %??