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Maple Industries has 7 percent bonds outstanding that mature in thirteen years. The bonds pay interest semiannually and have a face value of $1,000. Currently,

Maple Industries has 7 percent bonds outstanding that mature in thirteen years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $1,021.16. What is the firms pre-tax cost of debt? Please show work:

A. 6.75%

B. 6.84%

C. 6.91%

D. 7.03%

E. 7.14%

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