Airborne Airlines Incorporated has a $$1,000$ par value bond outstanding with $20$ years to maturity. The bond carries an annual interest payment of $$104$ and is currently selling for $$900.$ Airborne is in a $35$ percent tax bracket. The firm wishes to know what the aftertax cost of a new bond issue is likely to be$.$ The yield to maturity on the new issue will be the same as the yield to maturity on the old issue because the risk and maturity date will be similar.

a$.$ Compute the yield to maturity on the old issue and use this as the yield for the new issue.

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

Yield on new issue

$\%$

b$.$ Make the appropriate tax adjustment to determine the aftertax cost of debt.

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

$\backslash$table$[[$Aftertax cost of debt,$$