This problem is based on the appendix to this chapter. The Eastman Kodak Corporation had an issue of convertible bonds outstanding in spring 2005 that had a coupon rate of interest and sold for $ 1,277.20 per bond. The interest payments were made semiannually. The cost of straight debt is 6.05% and the firm’s tax rate is 30%. In addition, the cost of new equity raised through the sale of the conversion option was 13.5%, what was the estimated cost of convertible bonds to the company?