Bards and Yards has 10-year bonds outstanding that carry an annual coupon of 8 percent. The bonds mature in 7 years and are currently priced at 108.4 percent of face value. What is the firm's pre-tax cost of debt? Question 7 options: 1) 6.47 percent 2) 6.82 percent 3) 7.34 percent 4) 7.70 percent 5) 8.23 percent