Avicorp has a $10.4 million debt issue outstanding, with a 5.9% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 94.74% of par value. a. What is Avicorp's pretax cost of debt? b. If Avicorp faces a 35% 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. a. The cost of debt is \% per year. (Round to two decimal places.) b. If Avicorp faces a 35\% tax rate, the after-tax cost of debt is \%. (Round to two decimal places.) Avicorp has a $10.4 million debt issue outstanding, with a 5.9% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 94.74% of par value. a. What is Avicorp's pretax cost of debt? b. If Avicorp faces a 35% 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. a. The cost of debt is \% per year. (Round to two decimal places.) b. If Avicorp faces a 35\% tax rate, the after-tax cost of debt is \%. (Round to two decimal places.)