Pearces Cricket Farm issued a 25-year, 8% semiannual bond 3 years ago. The bond currently sells for 93% of its face value. The companys tax rate is 35%.

Suppose the book value of the debt issue is $45 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 13 years left to maturity; the book value of this issue is $45 million and the bonds sell for 53% of par. Assume the par value of the bond is $1,000.

What is your best estimate of the after-tax cost of debt? Enter your answer as a percentage rounded to 2 decimal places.