You want to estimate the cost of a firms hybrid security. The security was issued three years ago at $50/security. The price is currently $54/security. It pays a semiannual dividend of $2.50/security. The company has the one-time option to pay a super dividend of $55/security in 5 years, which would cause the securities to expire (essentially, a buyback option). Your research indicates that the company will exercise this option with a probability of 20%. What is the annualized cost of this firms hybrid security capital? i) 9.26% ii) 9.32% iii) 9.56%