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.

a$.$

$4\mathrm{.}92\%$

b$.$

$6\mathrm{.}22\%$

c$.$

$5\mathrm{.}92\%$

d$.$

$5\mathrm{.}02\%$

e$.$

$4\mathrm{.}33\%$