Question: A company's 8% coupon rate, semiannual payment, $1,000 par value bond that matures in 30 years sells at a price of $638.11. The company's federal-plus-state tax rate is 35%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.) Round your answer to two decimal places.