3. (10 points) The Saunders Investment Bank has the following financing outstanding. Debt: 140,000 bonds with a coupon rate of 10 percent and a current price quote of 114; the bonds have 20 years to maturity. 310,000 zero coupon bonds with a price quote of 16.5 and 30 years until maturity. Both bonds have a par value of $1,000. Assume semiannual compounding. Preferred stock: 230,000 shares of 8 percent preferred stock with a current price of $68, and a par value of $100. 1) What is the cost of debt for the company? 2) What is the cost of preferred stock for the company