Pretax cost of debt and after tax cost of debt

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Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 15 years to maturity that is quoted at 102 percent of face value. The issue makes semiannual payments and has an embedded cost of 10 percent annually. Company's pretax cost of debt is_________ percent. If the tax rate is 37 percent, the aftertax cost of debt is_______ percent. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16)) please show steps

Reference no: EM13775678

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