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Lancer Inc. has just issued 25-year, semi-annual coupon bonds with an 8% coupon rate. The face value is $1,000. The price of the bonds is

Lancer Inc. has just issued 25-year, semi-annual coupon bonds with an 8% coupon rate. The face value is $1,000. The price of the bonds is currently 96.85 percent of the face value. What is the companys (pre-tax) cost of debt as in APR?

4.15%

8.30%

4.21%

8.00%

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