To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 12 years to maturity. This bond has a 6.50% annual coupon, paid semiannually, sells at a price of $955, and has a par value of $1,000. If the firm's tax rate is 30%, what is the component cost of debt for use in the WACC calculation? Do not round your intermediate calculations.