Suppose you are given the following information for XYZ Co. Market information: Expected return on the market 11.5%, the risk free rate is 3%. The corporate tax rate is 30% Equity: 1,000,000 shares outstanding; $35 per share. Beta is 0.91 Debt: 30,000 bonds outstanding; par value $1000; quoted at 115% of par; coupon rate of 6%; time maturity of 7 years. (Assume semi-annual) Calculate the before tax cost of debt. (Enter percentages as decimals and round to 4 decimals)