often than not, the capital is being raised to fund

$]-$term projects.

Quantitative Problem: $5$ years ago, Barton Industries issued $25-$year noncallable, semiannual bonds with a $$1,000$ face value and a $6\%$ coupon, semiannual payment $($ $$30$

payment every $6$ months$).$ The bonds currently sell for $$847\mathrm{.}87.$ If the firm's marginal tax rate is $25\%,$ what is the firm's after$-$tax cost of debt? Do not round intermediate

calculations. Round your answer to two decimal places.