Calculating Cost of DebtJ&R Renovation, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is quoted at 95 percent of face value. The issue makes semiannual payments and has a coupon rate of 6.4 percent annually. What is the companys pretax cost of debt? If the tax rate is 35 percent, what is the aftertax cost of debt?