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Avicorp has a 513 1 million debt issue outstanding, with a 6 19 coupon rate the debt has semi-annual coupons, the next coupon is due

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Avicorp has a 513 1 million debt issue outstanding, with a 6 19 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 pnced at 95% of par value a. What is Avicorp's pro-tax cost of debt? Note Compute the effective annual return b. 11 Avicorp faces a 40% tax rate what is its after tax cost of debt? Note Assume that the firm wil always be able to utilize its full interest tax shold a. The cost of debt is % per year (Round to four decimal places)

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