ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with eight years to maturity that is quoted at 114.5 percent of face value. The issue makes semiannual payments and has an embedded cost of 10 percent annually.

What is ICUs pretax cost of debt?

Pretax cost of debt

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If the tax rate is 34 percent, what is the aftertax cost of debt?

Aftertax cost of debt