Apple has an outstanding semiannual coupon bond that pays a 10 percent annual coupon, has 13 years to maturity, and has a price of $1,253.36. The face value of the bond is $1,000, and the company has a tax rate of 25%. The before-tax, annual cost of debt is while the after-tax, annual cost of debt is . Because the bond's coupon rate is greater than the yield to maturity, this bond is a bond. (a) 3.5%;2.63%; discount (b) 7%;5.25%; premium (c) 5.25%;7%; premium (d) 7%;8.75%; premium