King Fisher Aviation issued a 25 year, 5.5% semi-annual bond 17 years ago. The bond sells today for 101% of par. The tax rate is 21%. What is the pretax cost of debt? What is the after-tax cost of debt? Which is more relevant, the pretax or the after-tax cost of debt? Why?

Input Area:			Output Area:
Settlement			Pretax cost of debt
Maturity			Aftertax cost of debt
Price (% of par)
Coupon rate
Payments per year
Tax rate