Husky Enterprises recently sold an issue of 14-year maturity bonds. The bonds were sold at a deep discount price of $535 each. After flotation costs, Husky received $520.12 each. The bonds have a $1,000 maturity value and pay $60 interest at the end of each year. Compute the after-tax cost of debt for these bonds if Huskys marginal tax rate is 40 percent. Round your answer to one decimal place