Hubbard Industries is an all-equity firm whose shares have an expected return of 10.3%. Hubbard does a leveraged recapitalization, issuing debt and repurchasing stock, until its debt-equity ratio is 0.59. Due to the increased risk, shareholders now expect a return of 15.5%. Assuming there are no taxes and Hubbard's debt is risk-free, what is the interest rate on the debt? The interest rate is 1%. (Round to two decimal places.)