Crandal Dockworks is undergoing a major expansion. The expansion will be financed by issuing new 15-year, $1,000 par, 5% annual coupon bonds. The market price of the bonds is $1,070 each. Crandal's flotation expense on the new bonds will be $30 per bond. Crandal's marginal tax rate is 21%. What is the pre-tax cost of debt for the newly issued bonds? O 5.76% 0 5.17% O 4.62% 4.95%