10) A firms capital structure consists of 30% long-term debt. At present, the company can raise debt by selling 17-year bonds with a 10.67% annual coupon interest rate. The firm is in a 38.05% income tax bracket. Its bonds generally require an average discount of $44 per bond and flotation costs of $31 per bond when being sold. Required: Calculate the firms current after-tax cost of long-term debt.