Transcribed image text: b) Samsung Inc. is trying to determine its cost of debt. The firm has a debt issue outstanding with 23 years to maturity that is quoted at 97% of face value. The issue makes semiannual payments and has an embedded cost of 5% annually. Assume the par value of the bond is $1,000 a) What is the company's pre tax cost of debt? b) If the tax rate is 40%, what is the after-tax cost of debt