Hugh has the choice between investing in a City of Heflin bond at 4.65 percent or investing in a Surething Incorporated bond at 6.75 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, what interest rate does Surething Incorporated need to offer to make Hugh indifferent between investing in the two bonds? Note: Round your answer to 2 decimal places.

Interest rate ___ %