Laurel, Inc., has debt outstanding with a coupon rate of 5.9 % and a yield to maturity of 7.1 % . Its tax rate is 35 % . What is Laurel's effective (after-tax) cost of debt? NOTE: Assume that the debt has annual coupons. Note: Assume that the firm will always be able to utilize its full interest tax shield. The effective after-tax cost of debt is enter your response here %. (Round to four decimal places.).