FIN.com issued a $1,000 par value bond that pays 8 percent annual interest and will mature in 8 years. The current market price for the bond is $975. Flotation costs will be 11 percent of market price. The company's marginal tax rate is 25%. What will be the FIN's after-tax cost of debt? FIN's after-tax cost of debt on the bond will be %. (Round to two decimal places.)