You issued debt in the form of bonds, with a face value of $1,000, and have 8 years until maturity. The bonds have an annual coupon rate of 6.4%, which are paid semiannually.

A. The current price is $1,065. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.)

B. The tax rate is 23%. What is the aftertax cost of debt?