Assume that you have been hired as a consultant by KeepCalm Co., a major producer of apparels in Southeast Asia, from kids’ wear to sports’ apparels, to estimate the firm's weighted average cost of capital and the impact of their plan to change the capital structure. The balance sheet and some other information are provided below.

Assets
Current assets	$ 29,000,000
Net plant, property, and equipment	105,000,000
Total assets	$134,000,000
Liabilities and Equity
Accounts payable	$ 8,000,000
Accruals	6,000,000
Current liabilities	$ 14,000,000
Long-term debt (36,000 bonds, $1,000 par value)	36,000,000
Total liabilities	$ 50,000,000
Common stock (5,000,000 shares)	40,000,000
Retained earnings	44,000,000
Total shareholders' equity	84,000,000
Total liabilities and shareholders' equity	$134,000,000

The stock is currently selling for $17.224 per share, and its noncallable $1,000 par value, 10-year, 10% bonds with semiannual payments are selling for $1,080.00.

The beta is 1.30 while the real risk-free rate is(R*) is 2%. Inflation rates will be 3% during the first two years and 5% on the years thereafter. Treasury bonds are expected to have .10(T-1)% of maturity risk premium(MRP). The required return on the stock market is 10.50%, but the market has had an average annual return of 13.50% during the past 5 years. The firm's tax rate is 30%.

 KeepCalm is expected to issue P1.25 worth of dividend per share at the end of the year with a constant growth of 5% each year.

25-26) What is the Treasury Bill and Treasury Bond rate?

27-28) What is the YTM and the after-tax cost of debt?