RAM Import has two bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 34 percent, what is the after-tax cost of RAMs debt? (20 points)

BOND	COUPON RATE	PRICE QUOTE	MATURITY	FACE VALUE
1	8%	110.10	12 YEARS	$40,000,000
2	6%	95.10	10 YEARS	$60,000,000