You are computing the weighted average cost of capital for a company with one bond issue outstanding with a maturity date of 9 years from now. The bonds pay a coupon rate of 5.6%, coupons are paid semiannually, and the next coupon payment will be paid 6 months from now. The bonds have a par value of $1000 and they currently are trading at a price of $1032. The company's tax rate is 38.0%. What is PP's effective cost of debt?