Jiminy's Cricket Farm issued a 30-year, 7.6 percent semiannual bond 5 years ago. The bond currently sells for 84.5 percent of its face value. The book value of this debt issue is $109 million. In addition, the company has a second debt issue, a zero coupon bond with 8 years left to maturity; the book value of this issue is $68 million, and it sells for 62 percent of par. The companys tax rate is 40 percent.

total book value of debt:177,000,000

total market value of debt: 134,265,000

What is the aftertax cost of debt?