(Topic: Cost of Debt) Micro Spinoffs Inc. has one issue of debt outstanding. It is a 12-year debt issued 6 years ago at par value with a coupon rate of 1.6%, paid annually. Today, the debt is still selling at par value. If the firm's tax bracket is 21%, what is its after-tax cost of debt? Assume a face value of $1,000. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)