The Bet - r - Bilt Company has a six - year bond outstanding with a 5 percent coupon. Interest payments are paid semi - annually. The face amount of the bond is $1,000. This bond is currently selling for 98 percent of its face value. What is the company's pre - tax cost of debt? 5.31 percent 5.35 percent 4.72 percent 5.42 percent 5.39 percent