Problem $13-20$ Cost of Debt $($LO$4)$

Micro Spinoffs Incorporated issued $10-$year debt a year ago at par value with a coupon rate of $6\%,$ paid annually. Today, the debt is selling at $$1,060.$ If the firm's tax bracket is $21\%,$ what is its percentage cost of debt? Assume a face value of $$1,000.$

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

Cost of debt $1\%$