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Pearces Cricket Farm issued a 30-year, 7% semiannual bond 4 years ago. The bond currently sells for 94% of its face value. The companys tax

Pearces Cricket Farm issued a 30-year, 7% semiannual bond 4 years ago. The bond currently sells for 94% of its face value. The companys tax rate is 30%. Assume the par value of the bond is $1,000. a. What is the pre-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 3 decimal places.) Pre-tax cost of debt %

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