Olympic Sports has two issues of debt outstanding. One is a 6% coupon bond with a face value of $35 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 $40 million, and the issue sells for 94% of par value. The firm's tax rate is 40%.

a. What is the before-tax cost of debt for Olympic?

b. What is Olympic's after-tax cost of debt?

Note: For all the requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.