18- A firm has a bond with 22 years to maturity, and pays an annual coupon payment of 10%. The bond is currently selling for $1,094.42. When the company issues a new bond, there will be administrative costs and flotation costs estimated at $35 per bond. If the firm decides to issue new 20-year bonds today with annual coupon payments, what would be the effective cost of the new bonds (pre-tax)? a 9.39% b- 10.19% c- 10.87% d- 11.05%