The Thansis Valve corporation plans to issue bonds with the following characteristics:

15 years to maturity

$1000 par value

Current price of $975

Coupon rate of 8.5%

Coupons paid semiannually

What is the component cost of debt (r_D) for these bonds?

Enter you answer as a decimal with a leading zero and 4 decimal places of precision (i.e. 0.1234)