The Raspberry Corporation is undergoing a major expansion. The expansion will be financed by issuing new 15-year, $1,000 FV, 9% annual coupon bonds. The yield-to-maturity on the newly-issued bonds is 8%. The market price of the bonds is $1,085.59 each. The applicable corporate tax rate is 35%. What is the pre-tax cost of debt for the newly issued bonds? Select one: a. 5.20% b. $1,085.59 C. 8.00% O d. 9.00%