Jiminys Cricket Farm issued a bond with 30 years to maturity and a semiannual coupon rate of 6 percent 3 years ago. The bond currently sells for 92 percent of its face value. The companys tax rate is 40 percent. The book value of the debt issue is $50 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 12 years left to maturity; the book value of this issue is $50 million, and the bonds sell for 54 percent of par.

What is your best estimate of the aftertax cost of debt?