Terek Corporation has 7.5 million shares of common stock outstanding, 280,000 shares of 4 percent preferred stock outstanding ($100 par), and 180,000 6 percent semiannual coupon bonds outstanding, Par value $1,000 each. The common stock currently sells for $50 per share and has a beta of 1.6, the preferred stock currently sells for $45 per share, and the bonds have 24 years to maturity and sell for 130.67 percent of par. The market risk premium is 8 percent/ T-bills are yielding 3 percent and the company's tax rate is 21 percent.

What is the After tax cost of Debt?