Joliet Company is planning to issue $1,000 par value bonds that have a coupon rate of 9.6\%. The bonds will be sold at a market price of $1,120. Flotation costs will amount to 4 percent of market value. The bonds would mature in 15 years and coupon payments would be semi-annual. Joliet's corporate tax rate is 35%. What is the firm's cost of debt financing? 8.24% 8.69% 5.65% 9.8% 11.5%