In mid-2009, Rite Aid had CCC-rated, 8-year bonds outstanding with a yield to maturity of 17.3%. At the time, similar maturity Treasuries had a yield of 4%. Suppose the market risk premium is 8%. What is Rite Aid's debt cost of capital?
a) 16.3%
b) 25.3%
c) 11.3%
d) 20.3%