(Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.4 percent annual interest and matures in 15 years. Investors are willing to pay $947 for the bond and Temple faces a tax rate of 18 percent. What is Temple's after-tax cost of debt on the bond?

The after-tax cost of debt is ..... %. (Round to two decimal places.)