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(Cost of debt) Temple-Midiand, Inc, is issuing a $1.000 par value bond that pays 7.4 percent annual interost and matures in 15 years. Investors are

(Cost of debt) Temple-Midiand, Inc, is issuing a $1.000 par value bond that pays 7.4 percent annual interost and matures in 15 years. Investors are wiling to pay 5950 for the bend and Tenple faces a tax rate of 34 percent. What is Temple's affer-tax cost of debt on the bond? The afier-tax cost of debt is \%. (Round to two decimal places.)

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