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Can someone confirm the following is correct Advance, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with

Can someone confirm the following is correct

Advance, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 10 years to maturity that is quoted at 110 percent of face value. The issue makes semiannual payments and has a coupon rate of 8 percent.

What is the company's pretax cost of debt?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Pretax cost of debt 6.62%

If the tax rate is 35 percent, what is the aftertax cost of debt?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Aftertax cost of debt

4.30%

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