Olympic sports has two issues of debt outstanding. One is a 6% coupon bond with a face value of $39 million, a maturity of 10 years, and a yield to maturity of 7%. The coupons are paid annually. The other bond issue has a maturity of 15 years, with coupons also paid annually, and a coupon rate of 7%. The face value of the issue is $44 million, and the issue sells for 90% of par value. The firms tax rate is 35%.

What is the before tax cost of debt for olympic?

What is the after tax cost of debt for olympic?