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The Parker Company sold a $1,000 par value bond that has 20 years to maturity and a 7.00% annual coupon rate with coupons paid semiannually.

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The Parker Company sold a $1,000 par value bond that has 20 years to maturity and a 7.00% annual coupon rate with coupons paid semiannually. The bond currently sells for $950, and the company's tax rate is 31%. What is the AFTER TAX component cost of debt for use in the WACC calculation? Enter the answer as a decimal with four places of precision (i.e. 0.1234). 2

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