Shanken Corp. issued a bond with a maturity of 15 years and a semiannual coupon rate of 10 percent 4 years ago. The bond currently sells for 91 percent of its face value. The book value of the debt issue is $60 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 11 years left to maturity; the book value of this issue is $35 million and the bonds sell for 51 percent of par. The companys tax rate is 38 percent.

Total Book Value = 95,000,000

Total market value = 72450000

Cost of Debt = ???????? %