The Saunders Investment Bank has the following financing outstanding:

Debt: 140,000 bonds with a coupon rate of 10 percent and a current price quote of 114; the bonds have 20 years to maturity.310,000 zero coupon bonds with a price quote of 16.5 and 30 years until maturity.Both bonds have a par value of $1,000.Assume semiannual compounding.

Preferred stock:230,000 shares of 8 percent preferred stock with a current price of $68, and a par value of $100.

1)What is the cost of debt for the company

2)What is the cost of preferred stock for the company?