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Sunrise, Incorporated, is trying to determine its cost of debt. The firm has a debt issue outstanding with 1 6 years to maturity that is

Sunrise, Incorporated, is trying to determine its cost of debt. The firm has a debt issue outstanding with 16 years to maturity that is quoted at 107 percent of face value. The issue makes semiannual payments and has an embedded cost of 10 percent annually.
What is the company's pretax cost of debt?
If the tax rate is 24 percent, what is the aftertax cost of debt?

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