Check My Work (1 remaining) Holmes' after-tax cost of debt? Round your answer to two decimal places. %

Problem 10.01 (After-Tax Cost of Debt) eBook Question 6 of 8 Ch eck My Work (1 remaining) The Holmes Company's currently outstanding bonds have a 10% coupon and an 11% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 25%, what is Holmes' after-tax cost of debt? Round your answer to two decimal places.