Stancorp has a $13.8 million debt issue​ outstanding, with a 6.2% coupon rate. The debt has​ semi-annual coupons, with t

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Stancorp has a
$13.8
million debt issue​ outstanding, with a
6.2%
coupon rate. The debt has​ semi-annual coupons, with the
next coupon is due in six months. The debt matures in five years.
It is currently priced at
93%
of par value.
a. What is​ Stancorp's pre-tax cost of​ debt? Note:
Compute the effective annual return.
b. If Stancorp faces a
30%
tax​ rate, what is its​ after-tax cost
of​ debt?