Sony Bond
Par value $1000	Coupon interest rate 7.0%	Corporate tax rate 35%
Cost $890	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.)

b.The after-tax cost of the Sony bond given the corporate tax rate is ???%

(Round to two decimal places.)