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Sunrise, Incorporated, is trying to determine its cost of debt

Finance

Sunrise, Incorporated, is trying to determine its cost of debt. The firm has a debt issue outstanding with 22 years to maturity that is quoted at 94 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually. What is the company's pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) . If the tax rate is 21 percent, what is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Pretax cost of debt % Aftertax cost of debt : %

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