3. Company A's 10 percent coupon rate, quarterly payment, $1,000 par value bond, which matures in 10 years, currently sells at a price of $950. The company's tax rate is 34.5 percent. Based on the nominal interest rate, what is the firm's component cost of debt for purposes of calculating the WACC? A. 7.5% B. 8.5% C. 7.09% D. 9.5% E. 10.5%