Q$7.$ Calculating Cost of Debt. Jiminy' s Cricket Farm issued a $23-$year, $6\mathrm{.}5$ percent semiannual bond.

The bond currently sells for $107$ percent of its face value. The company' $s$ tax rate is $35$ percent.

a$.$ What is the pretax cost of debt?

b$.$ What is the aftertax cost of debt?

c$.$ Which is more relevant, the pretax or the aftertax cost of debt? Why?