Stancorp has a $$13\mathrm{.}7$ million debt issue outstanding, with a $6\mathrm{.}1\%$ 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?

a$.$ The pre$-$tax cost of debt is $\%$ per year. $($Round to four decimal places.$)$