Thank you for your feedback Ballan. In the back of my iMac is the minitoslink connector the one that looks like the headphone jack? if so would this cable do the work?
http://www.amazon.com/6ft-Toslink-Mini-Cable/dp/B000FMXKC8
http://www.amazon.com/6ft-Toslink-Mini-Cable/dp/B000FMXKC8