The Lincoln Company sold a $$1,000$ par value, noncallable bond several years ago that now has $20$ years to maturity and a $7\mathrm{.}00\%$ annual coupon that is paid semiannually. The bond currently sells for $$925$ and the company's tax rate is $25\%.$ What is the component cost of debt for use in the WACC calculation?

$5\mathrm{.}35\%$

$5\mathrm{.}58\%$

$5\mathrm{.}81\%$

$6\mathrm{.}04\%$

$6\mathrm{.}28\%$