Laurel, Inc., has debt outstanding with a coupon rate of 5.80% and a yield to maturity of 6.89%. Its tax rate is 21%. What is Laurel's effective (after-tax) cost of debt? Note: Assume that the debt has annual coupons and that the firm will always be able to utilize its full interest tax shield. Laurel's effective after-tax cost of debt is \%. (Round to two decimal places.)