Several years ago the Jakob 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 $25\%.$ What is the component

cost of debt for use in the WACC calculation? Do not round your

intermediate calculations