Jiminys Cricket Farm issued a 30-year, 10 percent coupon bonds 7 years ago. The face value is $1,000. The bond currently sells for $1,080 and makes semiannual coupon payments. The companys tax rate is 35%. What is the pretax cost of debt? Choose the range that includes the correct solution.

Group of answer choices

Less than 7%

Greater than or equal to 7%, but less than 8%

Greater than or equal to 8%, but less than 9%

Greater than or equal to 9%, but less than 10%

Greater than or equal to 10%