Several years ago the Gustav Company sold a $$1,000$ par value, noncallable bond that now has $20$ years to maturity and a $7\mathrm{.}00\%$ annual coupon that is paid semiannually. The bond currently sells for $$875,$ and the company's tax rate is $40\%.$ What is the component cost of debt for use in the WACC calculation? Do not round your intermediate calculations.

$3\mathrm{.}78\%$

$5\mathrm{.}87\%$

$4\mathrm{.}58\%$

$4\mathrm{.}97\%$

$4\mathrm{.}92\%$