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Raymond Mining Corporation has 8 million shares of common stock outstanding and 130,000 quarterly bonds outstanding with face value $1000 and coupon rate of 4 percent. The common stock currently sells for $50 per share and has a beta of 1, and the bonds have 14 years to maturity and sell at parity (that is price=face value). The market risk premium is 8 percent, T-bills are yielding 1 percent, and Raymond Mining tax rate is 33. What is the cost of debt to use in the WACC calculation? (please enter your answer without the \% sign: if the answer is 10% please enter answer as 10) Answer: 8(4.00)