Question $19$

$7$ pts

McNamara Hotels has $750$ thousand bonds outstanding with the face value of $$1,000$ each. Bonds will mature in $10$ years and make semi$-$annual coupon payments. Coupon rate is $7\mathrm{.}5\%$ per year. Current price of the bonds on the secondary market is $$950$ per bond. In addition to these bonds company has no other debt outstanding.

What is annual cost of debt for the company?

Hint: Input your answer showing $2$ decimals as for example $14\mathrm{.}25$ when the answer is $14\mathrm{.}25\%.$