Homework $($i

Micro Spinoffs incorporated issued $10-$year debt a year ago at par value with a coupon rate of $5\%,$ paid annually. Today, the debt is selling at $$1,210.$ If the firm's tax bracket is $21\%,$ what is its percentage cost of debt? Assume a face value of $$1,000.$ Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ docimal places.

Cost of debt

$\%$