Suppose that Abarino Inc. has the following bonds outstanding: 1) Zero coupon bonds with exactly 10 years to maturity currently selling at $625 with par value of $1,000 for each zero coupon bond, while the total par value of all the zero coupon bonds is $75,000,000 2) 5% coupon bonds with around 14 years to maturity currently selling at a price of $1,070 and YTM (Yield to Maturity) of 3.86% with par value of $1,000 for each 5% coupon bond. The total par value of all 5% coupon bonds is $105,000,000 Assume that the tax rate is 35% for Abarino Inc. (b) Ignore the effect of taxation, calculate the YTM of the zero coupon bonds. (Note: Even on zero coupon bonds, the payments are assumed to be semiannual.) (5 marks) (c) Calculate the total after-tax cost of debt for the entire company