P14-6 Calculating Cost of Debt [LO2] Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity th embedded cost of 11 percent annually. at is quoted at 110 percent of face value. The issue makes semiannual payments and has an Required: (a) What is the company's pretax cost of debt? (Do not round your intermediate calculations.) (Click to select) (b)If the tax rate is 35 percent, what is the aftertax cost of deb!? (Do not round your intermediate calculations.) (Click to select) References eBook& Resources Worksheet Difficulty: Basic