Sony Bond
Par value $1000	Coupon interest rate 6.5%	Corporate tax rate 35%
Cost$900	Years to maturity 10

Answer the following questions:

a.Calculate the before-tax cost of the Sony bond using the bond's yield to maturity (YTM).

b.Calculate the after-tax cost of the Sony bond given the corporate tax rate.

a.The before-tax cost of the Sony bond using the bond's yield to maturity (YTM) is ___ %.

(Round to two decimal places.)