A company has a $1,000 par value, 20-year non-callable bond with an 8% annual coupon paid semiannually. The bond currently trades at $800. The company's marginal tax rate is 50%, but congress is planning to reduce the corporate tax rate to 40%. Compute the after-tax cost of debt under the old and new tax regimes. Please show your work.

Bond Yield to Maturity=

Tax rate (after-tax cost of debt in WAAC):

Old=

New=