Too Young, Inc., has a bond outstanding with a coupon rate of 6.4 percent and semiannual payments. The bond currently sells for $945 and matures in 21 years. The par value is $1000. What is the company's pretax cost of debt?

Question 5 options:

A)

7.44%

B)

7.20%

C)

6.90%

D)

3.40%

E)

7.00%