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Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 25 years to maturity that is quoted

Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 25 years to maturity that is quoted at 91 percent of face value. The issue makes semiannual payments and has an embedded cost of 5 percent annually.

a) What is the company's pretax cost of debt?

b) If the tax rate is 24 percent, what is the aftrtax debt?

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