Xavier Corporation is estimating its cost of bond financing. It has outstanding a $1,000 face value issue with an 11% coupon and 25 years to maturity. These bonds are currently selling for $1,141.56. Xavier would pay a 5% flotation cost to issue new, similar bonds and is in the 35% marginal tax bracket. 43. Determine the bond investors= required rate of return. a. 8.60%. b. 9.50%. C. 11.00%. d. 11.12%. *