Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the firm for the following:

A bond that has a $1 000 face value (par value) and a contract or coupon interest rate of 12.4 % that is paid annually. The bond is currently selling for a price of $ 1,120

and will mature in 10 years. The firm's tax rate is 30%.

The after-tax cost of debt from the firm is ___%. (Round to two decimal places