The current market rate of return is 15% and the risk-free rate is 1%. You have been given the job of determining your firm's cost of capital components. The company has 1100000 shares outstanding with a current value of $21.20 per share. The debt represents 15% of the capital structure and the yield to maturity is 4%. The beta of the equity is 1.7 and the tax rate is 34%. What is the market value of debt and its net cost to the firm?