round to four decimal please! the answer 7.74% is wrong!

Avicorp has a $10.7 million debt issue outstanding, with a 6.1% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 96% of par value. a. What is Avicorp's pre-tax cost of debt? Note: Compute the effective annual return. b. If Avicorp faces a 40% tax rate, what is its after-tax cost of debt? Note: Assume that the firm will always be able to utilize its full interest tax shield cedat 96%ofparvaleffective annual return a. The cost of debt is 7.74% per year x Sorry, that's not correct The cost of debt is the yield-to-maturity (YTM) on the outstanding debt issue. We solve for the 6-month YTM on the bond, and then compute the effective annual return (EAR) The EAR is calculated as EAR-(1+ YTM2