Engineers at a semiconductor company developed an improved front-end-of-line (FEOL) formulation process that requires an investment of $7.4 million. The company plans to issue $7.4 million worth of 10-year bonds that will pay interest of 7.3% per year, payable annually. If the companys effective tax rate is 33%, what is the after-tax cost (i.e., interest rate) of the debt financing? (Obtain the answers by hand.)

The after-tax cost of the debt financing is ______%.