Save Homework: Chapter 13 Homework Score: 0 of 1 pt 5 of 20 (20 complete) HW Score: 86.67%, 17.33 of 20 pts nge 3 Question Help P 13-6 (similar to) Avicorp has a $12.1 million debt issue outstanding, with a 6.2% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 93% of par value. a. What is Avicorp's pre-tax cost of debt? Note: Compute the effective annual retum. b. If Avicorp faces a 40% tax rate, what is its after-tax cost of debt? Note: Assume that the firm will always be able to utilize its full interest tax shield ked a. The cost of debt is % per year. (Round to four decimal places) Scor S: new Jestion 4(17 stion Jestion 8 (11 stion Jestion 12 Jestion 16 stion Jestion 20 stion stion Enter your answer in the answer box and then click Check Answer at to Check Answer Clear All part remaining (FIN 320 Fall 2020 Prof Hoven Stohs WEB Section 55) is based on FIN 320 Fundamentals of Corporate Finance, 3rd Edition for CA State Fullerton