jiminy cricket farm issued a bond with 25 years to maturity and a semiannual coupon rate of 10 percent 4 years ago. the bond currently sells for 97 percent of its face value. The company's tax rate is 35 percent.

er 14 -Cost of Cenltal K Question 5 (of 8) 100 points Problem 14-7 Calculating Cost of Debt CLO2] Jiminy's Cricke Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 10 percent 4 years ago. The bond currently sells for 97 percent of its face value. The company's tax rate is 35 percent a. What is the pretax cost of debt? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Pretax cost of debt b. What is the aftertax cost of debt? (Do not round intermediate calculations. Enter your answ percent rounded to 2 decimal places, e.g., 32.16.) Aftertax cost of debt c. Which is more relewant, the pretax or the aftertax cost of debt? Aftertax cost of debt Pretax cost of debt