You are analyzing the cost of debt for a firm. You know that the firm's $14-$year maturity, $7\mathrm{.}8$ percent coupon bonds are selling at a price

of $$843\mathrm{.}00.$ The bonds pay interest semiannually. If these bonds are the only debt outstanding, answer the following questions.

Problem $13\mathrm{.}17$ a$1-$a$2($a$1)$

Your answer is correct.

What is the current YTM of the bonds? $($Round intermediate calculations to $4$ decimal places, e$.$g$.1\mathrm{.}2514$ and final

answer to $0$ decimal places, e$.$g$.15\%.)$

Current YTM for the bonds

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Problem $13\mathrm{.}17$ a$1-$a$2($a$2)$

What is the after$-$tax cost of debt for this firm if it is subject to $30$ percent marginal and average tax rates? $($Round final answer

to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.)$