ST$1.$ Scherr Enterprises has a series of $8$ percent coupon bonds outstanding with a $$1,000$ par value.

The bonds mature in $10$ years and currently sell for $$946.$ If new bonds are issued, the issuance cost is

expected to be $$11$ per bond. Scherr's marginal tax rate is $40$ percent. What is the marginal after$-$tax

cost of debt for Scherr? $($Assume annual interest payments.$)$