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Jiminy's Cricket Farm issued a 30-year, 7 percent semiannual bond 3 years ago. The bond currently sells for 93 percent of its face value. The

Jiminy's Cricket Farm issued a 30-year, 7 percent semiannual bond 3 years ago. The bond currently sells for 93 percent of its face value. The company's tax rateis 35 percent. What is the pretax cost of debt? What is the aftertax cost of debt? Which is more relevant, the pretax or the aftertax cost of debt? WHy? (must use excel financial functions when possible)

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