J&R Renovation, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 10 years to maturity that is quoted at 109 percent of face value. The issue makes semiannual payments and has a coupon rate of 7 percent annually. a. What is the company's pretax cost of debt? b. If the tax rate is 23 percent, what is the after tax cost of debt?