You realize that there are tax advantages to funding your company using debt instead of equity. After understaning the company's investment needs, you have issued the following bonds: Annual coupon rate of 7.6%, paid semiannually. Remaining time to maturity of 8 years. Current price of $1,095. Face value is $1,000.
a.	What is the companys 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.	If the tax rate is 25%, 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.)