Trickle Corporation's 12 Percent Coupon Rate, Semi-Annual Payment, R1,000 Par

Trickle Corporation's 12 percent coupon rate, semi-annual payment, R1,000 par value bonds which mature in 25 years.The bonds currently sell for R1,230.51 in the market, and the yield curve is flat.Assuming that the yield curve is expected to remain flat, what is Trickle's most likely before-tax cost of debt if it issues new bonds today?

A) 4.78%
B) 6.46%
C) 7.70%
D) 9.56%
E) 12.92%