A firm has total equity of 450,000. It has 5 bonds outstanding as follows:

	Par Value	Coupon rate
Bond 1	130,000	6%
Bond 2	160,000	5.3%
Bond 3	85,000	7.7%
Bond 4	320,000	4.2%
Bond 5	50,000	7.5%
	745,000

Assume the following:

Tax rate: 35%

Real, risk-free rate of return: 1.3%

Expected Inflation: 2.1%

Market Risk Premium: 7.8%

Company Beta: .9

What is this firms Weighted Average Cost of Capital? Show all calculations, and be sure to show separately your calculation of the Cost of Debt and Cost of Equity.