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CDEFGHB ( CDHJiminy ' s Cricket Farm issued a 3 0 - year, 7 percent semiannual bond 3 years ago. The bond currently sells for

CDEFGHB

(

CDHJiminy

'

s Cricket Farm issued a

30 -

year,

7

percent semiannual bond

3

years ago. The bond currently sells for

93

percent of its face value. The company's tax rate is

22

percent. What is the pretax cost of debt? What is the aftertax cost of debt?

\

table

[[

Settlement

, \frac{01}{01} \frac{?}{00}

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