Laurel, Inc., has debt outstanding with a coupon rate of $5\mathrm{.}9\%$ and a yield to maturity of $6\mathrm{.}9\%.$ Its tax rate is $38\%.$ 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

$\%.($Round to four decimal places.$)$