lculating Cost of Debt Shanken Corp. issued a 30-year, 5.9 percent semiannual bond 6 years ago. percent. Assume that face value is $1,000. 2. Ca The bond currently sells for 108 percent of its face value. The company's tax rate is 35 a. What is the pretax cost of debt? (i.e., RD) b. What is the aftertax cost of debt? (i.e., Ro*(1-T.)) c. Which is more relevant, the pretax or the aftertax cost of debt? Why