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Sunrise, Incorporated, is trying to determine its cost of debt. The firm has a debt issue outstanding with $10$ years to maturity that is quoted at $104\mathrm{.}5$ percent of face value. The issue makes semiannual payments and has an embedded cost of $5\mathrm{.}6$ percent annually.

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a$.$ What is the company's pretax cost of debt?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ If the tax rate is $23$ percent, what is the aftertax cost of debt?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

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