Company B had issued 10-year bonds a year ago at the coupon rate 4%. The bond makes annual payments. The yield to maturity (YTM) of these bonds is 5%. The face value of the bond is $1000.

Calculate the current bond price.

Company B has a second debt issue on the market, a zero coupon bond with 9.6 years left to maturity. The yield to maturity (YTM) of these bonds is 8 %. The face value of the bond is $1000. Calculate the current bond price.

Refer back to previous two questions. If the market value of the 10-year bonds is $ 18 million and the market value of the zero coupon bond is $ 44 million (these are the two bond issues outstanding for the company B) what is the after tax cost of debt of company B? The tax rate is 30%. Express your answer as %.