The Cost of Debt Capital for a Firm _________________________

The cost of debt capital for a firm _________________________.

A) Is the return that the firm's creditors demand for new borrowings.
B) Can be calculated by estimating the beta of the firm's equity and then using the SML.
C) Can be estimated by finding the yield on recently-issued bonds with lower bond ratings.
D) Can be calculated by looking at the coupon rates on existing bonds of similar risk.
E) Can be observed directly even if the firm's bonds are not publicly traded.