TRM Consulting Services currently has the following capital structure:

Source Book Value Quantity

Common Stock $ $25,000,0001,250,000$

Preferred Stock $ $5,000,000100,000$

Long Term Debt $ $8,600,0008,600$

New debt would mature in $30$ years, have a coupon rate of $7\%,$ would pay interest semiannually, and would be sold for their par value of $$1,000,$ and would incur flotation costs of $2\%$ of the selling price. TRM$$s marginal tax rate is $25\%.$ Calculate TRM$$s after$$tax Cost of Debt as a percentage rounded to two decimal places. Do not enter $\%$ in the answer box. For example, if your answer is $0\mathrm{.}12345$ or $12\mathrm{.}345\%$ then enter as $12\mathrm{.}35$ in the answer box.