Cost of debt with fees. Dunder-Mifflin, Inc. (DMI) is selling 600,000 bonds to raise money for the publication of new magazines in the coming year. The bonds will pay a coupon rate of 11.3% with semiannual payments and will mature in 30 years. Its par value is $100. DMI hires an investment banker for the sale of the 600,000 bonds. The investment banker charges a fee of 11% on each bond sold. What is the cost of debt to DMI if the following are the proceeds before the banker's fees are deducted?

a. 44,256,000

b. 54,726,000

c. 64,602,000

d. 77,790,000