Use the Following Information and the Option Valuation Model for the Next

Use the following information and the option valuation model for the next two problems. Onyx Corporation has a $200,000 loan that will mature in one year. The risk free interest rate is 6 percent. The standard deviation in the rate of change in the underlying asset's value is 12 percent, and the leverage ratio for Onyx is 0.8 (80 percent) . The value for N(h1) is 0.02743, and the value for N(h2) is 0.96406.
-What is the required yield on this risky loan?

A) 6.165 percent.
B) 6.00 percent.
C) 0.165 percent.
D) 5.835 percent.
E) None of the abovE.