Stancorp has a $$10\mathrm{.}1$ million debt issue outstanding, with a $5\mathrm{.}9\%$ 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 $94\%$ 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?