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Suppose you are trying to calculate a bond's effective YTM in order to use it in a WACC calculation. The bond has a coupon rate

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Suppose you are trying to calculate a bond's effective YTM in order to use it in a WACC calculation. The bond has a coupon rate of 11% and pays coupons semi-annually. You just finished using trial and error to get the per period rate, and it is 5% (in other words, 5% gives the correct price when used in the bond pricing formula for this particular bond that pays coupons twice a year). What is the correct pre-tax rate to use as the cost of debt in your WACC calculation? OA. 11.5% OB..5.5% O.C. 5% OD. 11% OE. 10.5% OF 10% OG. 10.25%

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