Shanken Corp. issued a 30-year, 6.2 percent semiannual

bond 7 years ago. The bond currently sells for 108 percent of its face value. The company's tax rate is 35 percent.

For the firm in the previous problem, suppose the book value of the debt issue is $70 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 12 years left to maturity; the book value of this issue is $100 million and the bonds sell for 61 percent of par.

What is your best estimate of the after tax cost of debt now? (Please show what is need in the excel) Thanks