Kalben Corporation has a $1,000 par value bond with the following characteristics: an 8 percent coupon rate, semi annual payments, 20 year maturity, and currently sells at a price of $686.86. The company's tax rate is 20 %. Based on the nominal interest rate, not the Effective Annual Rate (EAR), what is the firm's component cost of debt for purposes of calculating the WACC? 6.11% 12.44% 7.32% 9.78%