Waller, Inc., is trying to determine its cost of debt. The firm has one bond issue outstanding with 9 years to maturity. The bond's price is quoted at 91 percent of face value. The issue pays a 11.00% annual coupon in semi-annual installments, and has a yield to maturity of 12.71%. Required:

(a) What is the company's pre-tax cost of debt? Leave as an APR. (Do not round your intermediate calculations.)

(b) If the tax rate is 35 percent, what is the after-tax cost of debt? Leave as an APR. (Do not round your intermediate calculations.)