Patel & Howell has zero coupon bonds outstanding that mature in $4$ years. The bonds have a face value of $$1,000$ and a current market price of $$798.$ What is the pretax cost

of debt? $($Use semiannual compounding.$)$

Multiple Choice

$6\mathrm{.}55\%$

$5\mathrm{.}91\%$

$5\mathrm{.}72\%$

$6\mathrm{.}31\%$

$6\mathrm{.}48\%$Patel & Howell has zero coupon bonds outstanding that mature in $4$ years. The bonds have a face value of $$1,000$ and a current market price of $$798.$ What is the pretax cost of debt? $($Use semiannual compounding.$)$