IBM's outstanding bonds have a coupon rate of 5%, a par value of $1,000, and 9 years remaining until maturity. If the bonds currently sell for $1,027, what is Alcoa's pre-tax cost of debt? Assume coupons are paid semiannually, but enter your final answer as an annualized rate in decimal format, and show four decimal places. For example, if your answer is 5.1%, enter .0510.