ABC will generate $$5$ million in debt capital by issuing five thousand $$10008\%$ per

year $10-$year bonds. If the effective tax rate of the company is $30\%$ and the bonds are

discounted $2\%,$ compute the cost of debt capital $($ a $)$ before taxes and $($ b $)$ after taxes

from the company perspective. Obtain the answers by hand and spreadsheet.