Red Oyster Seafood Company can issue a 30-year debt security that pays an annual coupon payment of $100. The bond carries a par value of $1,000 and is currently trading at par. Based on this information, determine the after-tax cost of Red Oyster’s debt if the firm’s marginal federal-plus-state tax rate is 35%. Red Oyster Seafood Company’s after-tax cost of debt (rounded to four decimal places) is:

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