Information on company

debt: 5000 bonds outstanding with a 9.4 percent coupon rate, $1000 par value, 25 years to maturity, selling for 109 percent of par, the bonds make annual payments.

common stock: 165,000 shares outstanding, selling for $62 per share; the beta is 1.15.

Market: 6.5 Percent market risk premium 5.5 percent risk free rate.

tax: The companys tax rate is 35 percent.

What is the pre tax cost of debt

What is the after tax cost of debt