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avicorp has a 12.8 million debt issue outstanding with 5.9% coupon rate. the debt has semi anual coupons,the next coupon is due in six months,

avicorp has a 12.8 million debt issue outstanding with 5.9% coupon rate. the debt has semi anual coupons,the next coupon is due in six months, and the debt matures in five years and it is currently priced at 93%of par value

a. what is avicorps pre tax cost of debt?

b. if avicorp faces 40% tax rate what is its afer tax cost of debt

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