Gertrude's Great Gloves issue bonds with a face value of $10,000, paying interest at j₂ = 6.25%, redeemable in exactly 14 years. An investor purchases the bond for $8,693.59. Calculate the cost of debt (j₂) for Gertrude's Great Gloves. You may give your answer as a percentage per annum to the nearest percent or use linear interpolation or a financial calculator to give a more accurate result.

Cost of debt = ?? % pa