Given the following information for Jano Corp, Find the pre-tax Cost of Debt. Assume the company's tax rate is 35%. Bonds: 10,000 7% semi-annual coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 102 % of par: the bonds make semiannual payments. Common Shares: 400,000 shares outstanding, selling for $50 per share; the beta is 1.15. Preferred shares: 25,000 shares of 5% preferred stock outstanding, currently selling for $65 per share. 8% market risk premium and 4% risk-free rate. 'a) 4.4% b) 6.8% c) 5.0% d) 3.4%