BM company's Stock and Bond information is provided below:Bond → Time to Maturity: 15-years; Annual Coupon Rate: 6.00%; PAR Value: $1000; Currently trading at: $1275.54; Corp Tax Rate: 25.00%Preferred Stock → Preferred Stock Price: $65.00; Preferred Annual Dividend: $3.50Common Stock (Method 1) → Equity Beta: 1.3; Risk-free Rate: 3.00%; Market Risk Premium: 6.00%Common Stock (Method 2) → Long-run earnings growth: 7.00%; Expected Dividend (in one year): $2.20; Current Stock Price: $61.00How much is IBM’s pre-tax cost of debt?Enter your answer in the following format: 0.1234;Hint: Answer is between 0.033 and 0.0392