Decline Inc. is trying to determine its cost of debt. The firm has a debt issue outstanding with $13$ years to maturity that is quoted at $105\mathrm{.}2$ percent of face value. The issue makes semiannual payments and has an embedded cost of $6$ percent annually.

What is the before$-$tax cost of debt $($rounded to two $(2)$ decimal places$)$ if the tax rate is $21$ percent? Answer: $ percent