J&B Inc. has $5 million of debt outstanding with a couponrate of 12%. Currently

J&B Inc. has $5 million of debt outstanding with a couponrate of 12%. Currently the yield to maturity on these bonds is 12%.If the firms tax rate is 40% what is the cost of debt toJ&B?a. 14%b. 12%c. 8.4%d. 5.6%