Av corp has a $13.9 million debt issue outstanding, with a 6.2% coupon rate. The debt has sem annual coupons, the next coupon is due in six months, and the debt matures n five years par value. a. What is Avicorp's pre-tax cost of debt? Note: Compute the effective annual return. b. If Avicorp faces a 40% tax rate, what is its after-tax cost of debt? Note: Assume that the firm will always be able to utilize its full interest tax shield t is currently priced at 95% o a.The cost of debt is ]%per year. (Round to four decimal places.) b. If Avicorp faces a 40% tax rate, the after-tax cost of debt is % (Round to four decimal places. Enter your answer in each of the answer boxes. O Type here to search 747 PM 4/9/2019