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Walter Corp.'s outstanding bonds have a 5.8% coupon, 5 years left until maturity, and are currently priced at $974.67. The firm's marginal tax rate is

Walter Corp.'s outstanding bonds have a 5.8% coupon, 5 years left until maturity, and are currently priced at $974.67. The firm's marginal tax rate is 30%. Walter's after-tax cost of debt is ____%. NOTE: As usual, assume that the coupon payments occur semiannually. Margin of error for correct responses: +/- .05(%)

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