Problem 11-10 (calculator version) Octopus Trans how $1,000 pat value bond outstanding with 10 years to buy the bond carries on meest payment of $86, payable semmily, and is currently selling for $1006 Octopus 15 percent tax bracket. The form wishes to know what the sertax cost of new bond is likely to be. The yield to maturity on the new issue will be the same as the yield to mounty on the old sue because the risk and maturity date will be me a. Compute the yield to maturity on the old issue and use this as the yield for the new issue (Do not round Intermediate calculations Round the final answer to 2 decimal places) Yield on new issue b. Make the appropriate tax adjustment to determine the ahertax cost of debt. Do not round intermediate calculations. Round the final answer to 3 decimal places) Cost of debt