CosaNostra Pizza is undergoing a major expansion. The expansion will be financed by issuing new 30-year, $1,000 par, 10% semiannual coupon bonds. The market price of the bonds is $1,020 each. Flotation expense on the new bonds will be $70 per bond. The marginal tax rate is 35%. What is the post-tax cost of debt for the newly-issued bonds?