You are analyzing the after$-$tax cost of debt for a firm. You know that the firm's $12-$year maturity, $16\mathrm{.}00$ percent semiannual coupon bonds are selling at a price of $$1,460.$ Assuming that these bonds are the only debt outstanding for the firm.

Problem $13\mathrm{.}19$a$1-$a$3($a$1)$

Your answer is correct.

What is the current YTM of the bonds? $($Round intermediate calculations to $4$ decimal places, e$.$g$.1\mathrm{.}2514$ and final answer to $2$ decimal places, eg$.15\mathrm{.}25\%.)$

$YTM\%$

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Attempts: $1$ of $3$ used

Problem $13\mathrm{.}19$ a$1-$a$3($a$2)$

What is the after$-$tax cost of debt for this firm if it has a marginal tax rate of $34$ percent? $($Round final answer to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.)$

After$-$tax cost of debt $\%$