2. Snapple is able to sell $3,000,000 of 8-year 7% coupon bonds (annual interest payments) at $1,150 per bond. After these bonds are sold, Snapple can sell an additional $2,000,000 of 4-year 10% coupon bonds (annual interest) at a price of $950 per bond. Snapples marginal tax rate is 25%. What is Snapples after tax cost of debt at the two borrowing rates?