Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with $11$ years to maturly that is quoted at $96$ percent of face value. The issue makes semlannual payments and has an embedded cost of $11$ percent annually.

Required:

$($a$)$ What is the company's pretax cost of debt? $($Do not round your Intermedlate calculatons.$)$

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$($b$)$ if the tax rate is $37$ percent, what is the aftertax cost of debt? $($Do not round your Intermedlate calculations.$)$

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