Problem 12-2 Calculating Cost of Debt J&R Renovation, Inc, Is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is quoted at 105 percent of face value. The issue makes semiannual payments and has a coupon rate of 4 percent annually s the companys pretax cost of debe (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g.. 3216.) Pretax cost of debt If the tax rate is 35 percent, what is the aftertax cost of debt? (Do not round intermediete calculations. Enter your answer as a ipped) percent rounded to 2 decimal places, e .g. 3216) Book Aftertax cost of debt % Print Reference links ferences