Costly Corporation plans a new issue of bonds with a par value of $1000, a maturity of 31 years, and an annual coupon rate of 8.0%. Flotation costs associated with a new debt issue would equal 4.0% of the market value of the bonds. Currently, the appropriate discount rate for bonds of firms similar to Costly is 7.0%. The firm's marginal tax rate is 50%. What will the firm's true cost of debt be for this new bond issue? 7.34% 3.67% 8.36% 4.18% 9.39%