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Avicorp has a $102 milion debt issue cutstanding. with a 5.9% coupon rate. The debt has semi-annual coupons, the next coupon is due in six

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Avicorp has a $102 milion debt issue cutstanding. with a 5.9% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt mafures in five years. If is currently priced at 84.68% of per valiue. a. What is Avicorp's pretax cost of debt? b. If Avicorp faces a 25% tax rate, what is its ater-tax cost of debt? Note: Assume that the firm will always be able to utilize its fult interest tax shield

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