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You issued debt in the form of bonds, with a face value of $ 1 , 0 0 0 , and have 9 years until

You issued debt in the form of bonds, with a face value of $1,000, and have 9 years until maturity. The bonds have an annual coupon rate of 7.8%, which are paid semiannually.
a.
The current price is $1,100. 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 22%. What is the aftertax cost of debt?
(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,12.34.)

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