Calculate the after-tax cost of debt for the following bond. The face value of the bond is $1,000, interest is paid annually, the coupon rate is 16 % and the bond matures in 30 years. Assume that the corporate tax rate is 28 %. When the bond was issued it sold for a price of $1,130.

The after-tax cost of debt for the bond is %. (Round to two decimal places.)