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Jiminy's Cricket Farm issued a 30-year, 7 percent semiannual bond 6 years ago. The bond currently sells for 96 percent of its face value. The
Jiminy's Cricket Farm issued a 30-year, 7 percent semiannual bond 6 years ago. The bond currently sells for 96 percent of its face value. The company's tax rate is 25 percent. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16)) Required: (a) The pretax cost of debt is percent. (b) The aftertax cost debt is percent.
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