(Cost of debt) The Zephyr Corporation is contemplating a new investment to be financed 33 percent from debt. The firm could sell new $1,000 par value bonds at a net price of $930. The coupon interest rate is 14 percent, and the bonds would mature in 14 years. If the company is in a 35 percent tax bracket, what is the after-tax cost of capital to Zephyr for bonds?

ROUND TO 2 DECIMAL PLACES. TRY TO PUT IN EXCEL.