Problem You realize that there are tax advantages to funding your company using debt instead of equity. After understaning the company's investment needs, you have issued the following bonds: Annual coupon rate of 7.2%, paid semiannually. Remaining time to maturity of 12 years. Current price of $1,085. Face value is $1,000. a. What is the company's pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) b. If the tax rate is 23%, what is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) a. Pretax cost of debt b. Aftertax cost fo debt % %