Question $19$

$4$ pts

A company needs to know its cost of debt. The company has a debt issue outstanding with $12$ years to maturity that is quoted at $104\mathrm{.}2$ percent of a face value of $$1,000.$ The issue makes semiannual payments and has a coupon rate of $6$ percent annually. What is the aftertax cost of debt in percentage terms if the tax rate is $21$ percent? $($DO NOT INCLUDE THE $\%$ SYMBOL IN YOUR ANSWER; $1$ or $2$ decimal places$)$