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 $745 and there are no flotation costs. The coupon interest rate is 3 percent, and the bonds would mature in 15 years. If the company is in the 21 percent tax bracket, what is the after-tax cost of capital to Zephyr?