A firm is contemplating the issuance of a new corporate bond. There are flotation costs and the CFO must also factor in taxes. What is the cost of capital for this bond if:

- it has a 4-year maturity $1,000 Face Value

- has an annual coupon rate of 6%

- it is being sold on the market for $1,100

- the flotation cost per bond is $60

- the company's annual tax rate is 32%?

Please show your work or explain how you arrived at your solution.