To help finance a major expansion, Dimkoff Development Company sold a bond several years ago that now has 30 years to maturity. This bond has a 7% annual coupon, paid quarterly, and it now sells at a price of $752.58. The bond cannot be called and has a par value of $1,000. If Dimkoff's tax rate is 40%, what component cost of debt should be used in the WACC calculation?

Select the correct answer. 5.26% 5.70% 5.59% 5.37% 5.48%