XYZ Company has issued 30-year, semi-annual bonds that have a 5 percent coupon. The face amount of each bond at the time of issue was $1,000. These bonds are currently selling for 112% of face value. What is the company's pre-tax cost of debt?

Select one:

a. 3.98 percent

b. 4.42 percent

c. 4.29 percent

d. 3.56 percent

e. 2.45 percent

When calculated corrected, the Weighted Average Cost of Capital results in the companys net present value.

Select one:

True

False