Five Rivers Casino is undergoing a major expansion. Issuing new 15-year, $1,000 par, 9% annual coupon bonds, will finance the expansion. The market price of the bonds is $1,070 each. Gamblers floatation expense on the new bonds will be $50 per bond. Gamblers marginal tax rate is 35%. What is the pre-tax cost of the debt for the newly issued bonds?