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Olympic Sports has two issues of debt outstanding. One is a 9 % coupon bond with a face value of $ 2 9 million, a

Olympic Sports has two issues of debt outstanding. One is a 9% coupon bond with a face value of $29 million, a maturity of 10 years, and a yield to maturity of 10%. 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 10%. The face value of the issue is $34 million, and the issue sells for 96% of par value. The firm's tax rate is 20%.
What is the before-tax cost of debt for Olympic?
What is Olympic's after-tax cost of debt?

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