XYZ's Electrical has a bond issue outstanding with ten years to maturity. These bonds have a $1,000 face value, a 6 percent coupon, and pay interest semi-annually. The bonds are currently quoted at 96...

XYZ's Electrical has a bond issue outstanding with ten years to maturity. These bonds have a $1,000 face value, a 6 percent coupon, and pay interest semi-annually. The bonds are currently quoted at 96 percent of face value. What is XYZ's approximate pre-tax cost of debt?