Suppose Tesla Inc. is planning to issue some $1,000 par value, 4 years, 4.9% coupon bond and will be sold at a price of $988. If the company expects to incur a flotation cost of 3% of the par value and its marginal tax rate is 17% percent then what is the annual after-tax cost of debt to the company on this issue? (Enter the answer in terms of percentage but do not inter the "\%" sign and round your answer to two decimat point)