(Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.2 percent annual interest and matures in 15 years. Investors are willing to pay $951 for the bond and Temple faces a...

Extracted text: (Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.2 percent annual interest and matures in 15 years. Investors are willing to pay $951 for the bond and Temple faces a tax rate of 34 percent. What is Temple's after-tax cost of debt on the bond? The after-tax cost of debt is %. (Round to two decimal places.)