A company is determining the cost of debt for use in its weighted average cost of capital. It has recently issued a 10-year, 6 per cent semi-annual coupon bond for R864. The bond has a maturity value of R1,000. If the marginal tax rate is 35 per cent, the cost of debt (%) they should use in their calculation is closest to: 1. 2.6. 2. 3.9. 3. 5.2. 4. 8.9