The data in this question is used in the next five problems. You work in the finance department of Brom, Inc. The firm currently has a debt-to-asset ratio of 35%. The firm's outstanding debt is a single bond issue. These securities have a face value of $1,000, mature in 14 years, bear 5% (annual) coupons and are currently trading at 95.205% of par. The firm's current beta is 0.65. It faces the statutory 21% marginal tax rate. The current return on T-Bonds is 4% and the long-term market risk premium is 7%, therefore the firm's cost of equity financing is 8.55%. What is the the firm's cost of debt? (Round your answer to two decimal places, e.g.4.75) Numeric Response