Global Products plans to issue long-term bonds to raise funds to finance its growth. The company has existing bonds outstanding that are similar to the new bond expects to issue. The existing bonds, which have a face value equal to $1,000 and a coupon rate of interest equal to 4 percent (semiannual payments), mature in years. These bonds are currently selling for $1,120 each. Global's marginal tax rate is 40 percent. a. What should be the coupon rate on the new bond issue? Round your answer to one decimal place. % b. What is Global's after-tax cost of debt? Round your answer to one decimal place. %