Problem $2$

Suppose company ABC can issue new $10-$year bonds, with $6$ percent, paid semiannually, assume a tax rate of $40$ percent.

a$)$ What is the company's before$-$ and after$-$tax cost of debt if these bonds are issued at par value?

b$)$ What is the company's before and after$-$tax cost of debt if these bonds are issued at $$98?$