A firm raises capital by selling $10,000 worth of debt with flotation costs equal to 3% of its par value. If the debt matures in 5 years and has an annual coupon interest rate of 12%, what is the bond's YTM? The bond's YTM is %. (Round to two decimal places.) Your firm, People's Consulting Group, has been asked to consult on a potential preferred stock offering by Brave New World. This 11% preferred stock issue would be sold at its par value of $40 per share. Flotation costs would total $2.00 per share. Calculate the cost of this preferred stock. The cost of preferred stock is %. (Round to two decimal places.)