Chapter 12 - End of Chapter Questions and Problems - Question 5 (After-tax Cost of Debt) 2.94% 3.63% 4.74% 5.60% 5.94% LO 2 5. Calculating Cost of Debt ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with seven years to maturity that is quoted at 103 percent of face value. The issue makes semiannual payments and has an embedded cost of 5.1 percent annually. What is the company's pretax cost of debt? If the tax rate is 21 percent, what is the aftertax cost of debt