Flotation costs and the cost of debt In March of $2020$ PepsiCo, Inc. $($PEP$)$ sold $$750$ million worth of $20-$year $5\mathrm{.}00\%$ coupon bonds that pay semi$-$annual interest. At the time the bonds were issued, the market

paid $$1,005\mathrm{.}72$ per bond and the flotation cost was $$19\mathrm{.}42$ per bond. Pepsi's corporate tax rate is $21\%.$

a$.$ Ignoring flotation costs, what is Pepsi's before$-$tax and after$-$tax costs of debt?

b$.$ Considering flotation costs, what is Pepsi's before$-$tax and after$-$tax costs of debt?

a$.$ Ignoring flotation cost, Pepsi's before$-$tax cost of debt is

$\%.($Round to two decimal places.$)$