Jiminy$$s Cricket Farm issued a bond with $30$ years to maturity and a semiannual coupon rate of $5$ percent $3$ years ago. The bond currently sells for $94$ percent of its face value. The company$$s tax rate is $22$ percent.

a$.$

What is the pretax cost of debt? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the aftertax cost of debt? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$

Which is more relevant, the pretax or the aftertax cost of debt?

multiple choice

Aftertax cost of debt

Pretax cost of debt