Cheegg.com issues a bond with par value of $1,000 that will be paying 8 percent coupon rate and will mature in 8 years. The current market price for the bond is $955, with a flotation cost of 15 percent based on the market price. What will be Cheegg's after-tax cost of debt if the company pays taxes at the 35% rate? The firm's after-tax cost of debt on the bond will be %. (Round to two decimal places.)