is the given

this is samplw formula. can you please follow the sample formula and solution here.

Avicorp has a $13.8 million debt issue outstanding, with a 6.1% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value. a. What is Avicorp's pre-tax cost of debt? Note: Compute the effective annual return. b. If Avicorp faces a 40% tax rate, what is its after-tax cost of debt? Note: Assume that the firm will always be able to utilize its full interest tax shield. a. The cost of debt is % per year. (Round to four decimal places.) calculating the semi annual yield using excel rate function = RATE[nper, pmt, - pv, fv] pretaxcostofdebt=semiannualyield2=3.765332=7.53066 therefore the pre tax cost of debt =7.53% if the tax rate is =40% aftertaxcostofdebt=pretaxcost(1taxrate)=7.53(140%)=4.52% the after tax cost of debt =4.52%