Cost of debt using the approximation formula For the following $1,000-par-value bond, assuming annual interest payment and a 25% tax rate, calculate the after-tax cost to maturity using the approximation formula Underwriting fee Life 15 years Discount ( - ) or premium (+) $40 Coupon interest rate 6% $25 The after-tax cost of financing using the approximation formula is % (Round to two decimal places.)