A company has a cost of equity of 14.50% and an unlevered cost of capital of 10.60%.The company has $18,940 in debt that is selling at par value.The levered value of the firm is $33,671, and the tax rate is 31%.What is the pre-tax cost of debt?

Question 3 options:

5.89%

6.05%

6.20%

6.36%

6.51%