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Jiminy's Cricket Farm issued a 3 0 - year, 5 percent semiannual bond 4 years ago. The bond currently sells for 9 4 percent of

Jiminy's Cricket Farm issued a 30-year, 5 percent semiannual bond 4 years ago. The bond currently sells for 94 percent of its face value. The companys tax rate is 25 percent.
What is the pretax cost of debt?
What is the aftertax cost of debt?

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