KYZ corporation has 3.9 million shares. They have 44,000 bonds. Their stock sells for $40. They have a beta of 1.65. The market is expected to return 11.5%. Treasury bonds yield 5.5%. Their onds yield 7%. The bonds have a par value of $1000. They pay semi-annual coupon payments. he coupon rate is 7%. The bonds mature in 10 years. They have a 40% tax rate. What is the cost f debt (Kg)? =24