The Bet-r-Bilt Company has a 5-year bond outstanding with a 3.85 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1,000. This bond is currently selling for 93 percent of its face value. What is the company's pre-tax cost of debt? A) 9.0 percent B) 5.5 percent C) 2.3 percent D) 3.9 percent E) 7.8 percent