Avicorp has a $11.3 million debt issue outstanding, with a 5.8% 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 curtently priced at 94.72% 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 abie to itize its full interest tax shield. a. The cost of debt is % per year. (Round to two decimal places.)