Avicorp has a $13.1 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 96% of 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? a. The cost of debt is l % per year. (Round to four decimal places.) Enter your answer in the answer box and then click Check Answer. remaining Clear All Check Answer Dll F8 FS F6 F9 F10 5 6