JKL Corp. needs to evaluate its capital investments with respect to the cost of capital. The following information is available: The corporate tax rate for JKL Corp. is 40%. The firm believes it is at its target capital structure of 30% long-term debt, 10% preferred stock, and 60% common equity. The current price of non-callable 12% coupon JKL bonds is $1153.72 with 15 years remaining till maturity. The firms perpetual preferred stock is priced at $116.95 paying 10% dividend on a quarterly basis. JKLs common stock is currently trading at $50 per share. It recently paid $3.12 as dividend per share, which is expected to grow at a constant rate of 5.8%. JKLs beta is evaluated at 1.2, with yield on US Treasury bonds at 5.6% and a market risk premium of 6%. The CFO believes the market attributes a 3.2% risk premium on the firms borrowing yields.

What is JKL's YTM on its bond?