Too Young, Incorporated, has a bond outstanding with a coupon rate of $7$ percent and semiannual payments. The bond currently sells for $$1,898$ and matures in $16$ years. The par value is $$2,000.$ What is the company's pretax cost of debt?

Multiple Choice

$8\mathrm{.}12\%$

$3\mathrm{.}71\%$

$7\mathrm{.}55\%$

$7\mathrm{.}86\%$

$7\mathrm{.}64\%$