5 years ago, a company issued a set of 20-year semiannual coupon-ed bonds with a coupon rate of 8% at a price of $950.00. Today, these bonds trade at $970.00. Ignoring floatation costs and assuming coupon payments by the company are allowed to reduce its taxable income [30%], the after-tax cost of debt k_d for this company is _________%. [TWO-decimal places]

Instructions: Please show your work. Just calculate this and type your answer in the box below. Your number format should be in units of % to TWO-decimal places. For example, 65.12% or 65.12 would be acceptable, while 0.65 [a decimal] and 65% and 65.1% and 65.123% and 65.1234% and 65 and 65.1 and 65.123 and 65.1234 would be auto-graded incorrectly.