The Zephyr Corporation is contemplating a new investment to be financed 33 percent from debt. The firm could sell new

$1,000

par value bonds at a net price of

$935.

The coupon interest rate is

8

percent, and the bonds would mature in

13

years. If the company is in a

30

percent tax bracket, what is the after-tax cost of capital to Zephyr for bonds?

The after-tax cost of capital to Zephyr for bonds is

nothing%.

(Round to two decimal places.)