Juno has 8 percent bonds outstanding that mature in 19 years. The bonds pay Interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $989 each. What is Juno's pre-tax cost of debt? A) 8.09 percent B) 8.11 percent C) 8.14 percent D) 8.18 percent 24. Which of the following is true? A) Internal equity is cheaper than external equity. B) The advantage of using debt for a firm is that it increases the chance of going bankruptcy The chance of going bankruptcy tends to be very low for a firm, therefore, firms can ignore it when determining their capital structure. D) The before-tax and after tax cost of equity is different