UMPI Corporation wants to raise an additional $4,000,000 of capital by issuing bonds. They need the capital to expand their operations into Canada. - They were assured by their investment bank that they would have to pay a 2.5% commission of the selling price on each new bond issues. -Their CFO needs to estimate the corporation’s cost of debt for inclusion into the WACC equation. -UMPI currently has an 7%, AA-rated, non-callable bond issue outstanding, which pays interest semi-annually and will mature in 20 years. It has a face value of $1,000 and is currently trading at $1,055. Calculate the appropriate cost of debt for UMPI.