American Dental Laser is selling a 10-year $1,000 face value bond with an 8% coupon rate. Interest is paid annually. The price to the public is $820, and the issue costs per bond are $10 each. Compute the pretax cost of debt for these bonds.

	a.	11.8%
	b.	11.5%
	c.	11.1%
	d.	11.3%