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

a)What is the cost of debt and the cost of preferred stock for the company?