Compute the after-tax cost of debt for a planned new issues of bonds.

• The annual interest in dollars is (7.2% * $1,000_par) = $72
• The par value of the bonds is $1,000
• The flotation costs amount to $15.00
• The net proceeds of the bond is $1,000_Par - $15.00_Float = $985
• The bonds will mature in twenty-five years
• The firm's tax rate is 21%

Note: Enter your answer in percentage terms, but don't include the percent sign, and go out two decimal places (e.g. enter 6.51 for 6.51%).