(Cost of debt) Belton Distribution Company is issuing a $1,000 par value bond that pays 7.1 percent arrual interest and itatuns in 15 year the is ped semiannually. Investors are willing to pay $962 for the bond. The company is in the 20 peroont marginal tax bracket. What is the firmirs aftur-tar corl do cost on the bond? The firm's after-tax cost of debt on the bond is 16. (Round to two decimal places.)