XYZ Inc. plans a bond issue for the near future and wants to estimate its current cost of debt capital. The firm's chief financial officer has determined that a 7-year maturity bond with a $1,000 face value and 8 percent coupon can be sold to investors for net proceeds of $852. What is the cost of debt financing to the firm?

Group of answer choices

10.5989 %

10.041 %

9.4832 %

11.1567 %

12.2724 %