Several years ago the Jakob Company sold a $$1,000$ par value, noncallable bond that now has $20$ years to maturity and a $12\mathrm{.}00\%$ annual coupon that is paid semiannually. The bond currently sells for $$850,$ and the company's tax rate is $25\%.$ What is the component cost of debt for use in the WACC calculation? Do not round your intermediate calculations.

a$.5\mathrm{.}29\%$

b$.7\mathrm{.}14\%$

c$.10\mathrm{.}72\%$

d$.11\mathrm{.}20\%$

e$.14\mathrm{.}29\%$