Bender and Co. is issuing a $1000 par value bond that pays 9%interest annually.

Bender and Co. is issuing a $1000 par value bond that pays 9%interest annually. Investors are expected to pay $918 for the10-year bond. Bender will have to pay $33 per bond in flotationcosts. What is the cost of debt if the firm is in the 34% taxbracket? a. 7.23% b. 9.01% c. 9.23% d. 11.95%