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 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%.

What is the before cost of debt for Olympic?

What is the after cost of debt?