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Contrail Air, Inc is trying to determine its cost of debt. Thecompany has an outstanding debt issue with 18 years to maturitythat is quoted at 95.00% percent of face value. The issue makessemiannual payments and has a coupon rate of 8.00% percent. What isthe after tax cost of debt?Settlement01/01/2000Maturity01/01/2018Price (% of par)95 Coupon rate8%Payments per year2 Tax rate35%Pretax cost8.55%5.56%11.54%6.33%13.15%