Problem 11-9 Bond Yield and After-Tax Cost of Debt

A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 25 years sells at a price of $601.78. The company's federal-plus-state tax rate is 35%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? Round your answer to two decimal places. (Hint: Base your answer on the nominal rate.)

_________%