Terrier Company is in a $45$ percent tax bracket and has a bond outstanding that yields $11$ percent to maturity.

a$.$ What is Terrier's aftertax cost of debt?

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

Aftertax cost of debt

$\%$

b$.$ Assume that the yield on the bond goes down by $1$ percentage point, and due to tax reform, the corporate tax rate falls to $30$ percent. What is Terrier's new aftertax cost of debt?

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

Aftertax cost of debt

$\%$