What is the pretax cost of debt-aftertax cost of debt

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Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 12 percent 3 years ago. The bond currently sells for 94 percent of its face value. The company’s tax rate is 35 percent. What is the pretax cost of debt? What is the aftertax cost of debt?

Reference no: EM13933336

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