Blue Sky Corporation is planning to issue $1,000 par value bonds. The bonds will have a coupon rate of 12 percent and will be sold at a market price of $980. Flotation costs will amount to 6 percent of market price. The bonds will mature in 20 years and interest payments will be made semi-annually. The company's marginal tax rate is 21%. What is the firm's after-tax cost of debt financing? 13.12% 9.69% 10.36% 12.00% 12.279