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

The annual interest in dollars is $(7\mathrm{.}2\%*$ $$1,000$par$)=$ $$72$

The par value of the bonds is $$1,000$

The flotation costs amount to $$15\mathrm{.}00$

The net proceeds of the bond is $$1,000$Par $-$ $$15\mathrm{.}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 $6\mathrm{.}51$ for $6\mathrm{.}51\%).$