The Bet-r-Bilt Company has a 5-year bond outstanding with a 7.28 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1,000. This bond is currently selling for 97 percent of its face value. What is the company's pre-tax cost of debt?
7.32 percent
8.02 percent
7.98 percent
8.05 percent
7.94 percent
7.32 percent
8.02 percent
7.98 percent
8.05 percent
7.94 percent