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The Holmes Company's currently outstanding bonds have a 9 % coupon and an 1 1 % yield to maturity. Holmes believes it could issue new

The Holmes Company's currently outstanding bonds have a $9 %$ coupon and an $11 %$ yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is $25 %,$ what is Holmes' after $-$ tax cost of debt? Round your answer to two decimal places.

$%$

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