Dog Gone Good Engines Has a Bond Issue Outstanding with 17

Dog Gone Good Engines has a bond issue outstanding with 17 years to maturity.These bonds have a $1,000 face value,a 9 percent coupon,and pay interest semi-annually.The bonds are currently quoted at 82 percent of face value.What is the company's pre-tax cost of debt if the tax rate is 38 percent?

A) 4.10 percent
B) 4.42 percent
C) 6.61 percent
D) 8.90 percent
E) 11.42 percent