P14-6 Calculating Cost of Debt [LO2] Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 22 years to maturity that is quoted at 94 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually. What is the company's pretax cost of debt? 6.52% 7.82% 5.15% 717% 5.87% If the tax rate is 21 percent, what is the aftertax cost of debt? 5.15% 4.63% 5.66% 7.21% 6.52%