Use the below information for this problem;

Debt rating AAA AA A BBB BB B CCC

Average Debt Beta 0.05 0.05 0.05 0.1 0.17 0.26 0.31

The market value of equity=$4,500 Market value of debt=$3,500 Equity beta=1.2 Debt rating=CCC Coupon rate of bonds=6% Yield to maturity of bonds=5.20% Tax Rate=21%. Suppose the risk-free is 1.1% and the expected market risks premium is 5%. The effective cost of debt for Strive Corp. is ..........%. Round your answer to the nearest one decimal place. Please give a step-by-step explanation.