Jacqui Capital has outstanding corporate bonds paying a $10\%$ coupon semi annually, with a

current yield to maturity of $8\%.$ If Jacqui$$s tax rate is $35\%,$ what is the company$$s effective

cost of debt? Answer is $5\mathrm{.}2\%$

A$)5\mathrm{.}2\%$

B$)10\mathrm{.}0\%$

C$)8\mathrm{.}0\%$

D$)6\mathrm{.}5\%$

E$)5\mathrm{.}0\%$