gif, Inc. is looking at raising additional capital for a future project. For gif, Inc. to determine whether this project is worth investing in, it must first determine the cost of the capital it will use to finance the project.

(Input all answers as values with no commas, with no symbols ex. no $ or %. Input all % answers as whole numbers without symbols ex. 10.03 for .1003. Input all final answers two decimal places out.)

Q: The firm is looking at issuing a new 30-year bond that pays an annual coupon of 8%. The bond is expected to sell at $980. What is the after-tax cost of debt?