Jiminy's Cricket Farm issued a 30-year, 8.8 percent semiannual bond 5 years ago. The bond currently sells for 89.5 percent of its face value. The companys tax rate is 40 percent.

Required:
(a)	What is the pretax cost of debt? (Do not round intermediate calculations. Enter your answer as a percentage 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 answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Aftertax cost of debt

%

(c)	Which is more relevant, the pretax or the aftertax cost of debt?
	(Click to select)Aftertax cost of debtPretax cost of debt