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Answer the question without excel and show me the steps Pearce's Cricket Farm issued a 30 -year, 8% semiannual bond 5 years ago. The bond

Answer the question without excel and show me the steps

image text in transcribed Pearce's Cricket Farm issued a 30 -year, 8% semiannual bond 5 years ago. The bond currently sells for 93% of its face value. The company's tax rate is 25%. Assume the par value of the bond is $1,000. a. What is the pre-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Pre-tax cost of debt % b. What is the after-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) After-tax cost of debt % c. Which is more relevant, the pre-tax or the after-tax cost of debt? After-tax cost of debt Pre-tax cost of debt

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