Before-tax cost of debt Gronseth Drywall Systems, Inc., is in discussions with its investment bankers regarding the issuance of new bonds. The investment banker has informed the firm that different maturities will carry different coupon rates and sell at different prices. The firm must choose among several alternatives. In each case, the bonds will have a $1,000 par value and flotation costs will be $35 per bond. Calculate the before-tax cost of financing with the following alternative. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Coupon rate 6% Time to maturity 14 years Premium or discount -$210 The before-tax cost of debt is %. (Round to two decimal places.) Before and after-tax cost of debt For the following $1,000-par-value bond paying semi-annual interest payments, calculate the before- and after-tax cost of debt. Use the 21% corporate tax rate. Issuer Name ATT Inc. Coupon Rate 6.40% Years to Maturity 34 Price $994.89 The before-tax cost of debt for ATT Inc. is %. (Round to two decimal places.)