Octopurs Iransit has a $1,000 par value bond outstancing with 10 years to maturity. The bond carries an annual interest payment of \$100. payable semiannually, and is currently selling for $1,103. Octopus is in a 25 percent tax bracket. The firm wishes to know what the aftertax cost of a new bond issue is likely to be. The yleld to maturity on the new issue will be the same as the yield to matuily on the old issue because the risk and maturity date will be simillar. a. Compute the yield to maturity on the old issue and use this as the yield for the new issue. (Do not round intermediate calculations: Round the final answer to 2 decimal places.) Yield on new issue b. Make the appropilate tax adjustment to determine the aftertax cost of debt. (Do not round intermediere calculationa. Round the final answer to 3 decimal places.)