The Apple Tree Lodge sold an issue of 30-year bonds. The bonds sold at $985 each. After issuance costs, Tokyo Food Supplies received $979 each. The maturity value is $1,000 each and the coupon rate is 11% and paid annually. What is the after-tax cost of debt for these bonds if Tokyo Food Supplies marginal tax rate is 40%?

P/Y
Beg/End
N
I/Y
PV
PMT
FV

11.01%

11.24%

4.50%

6.74%