David Abbot is interested in purchasing a bond issued by Sony. He has obtained the following information on the security:
![](https://www.solutioninn.com/image/images4/96-B-F-M-F%20(410).png)
Answer the following questions.
a. Calculate the before-tax cost of the Sony bond.
b. Calculate the after-tax cost of the Sony bond given David's taxbracket.