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(Cost of debt) Belton Distribution Company is issuing a $1,000 par value bond that pays...

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(Cost of debt) Belton Distribution Company is issuing a $1,000 par value bond that pays 7.7 percent annual interest and matures in 15 years that is paid semiannually. Investors are willing to pay $961 for the bond. The company is in the 19 percent marginal tax bracket. What is the firm's after-tax cost of debt on the bond? The firm's after-tax cost of debt on the bond is %. (Round to two decimal places.)

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