A company is going to issue a $1,000 par value bond that pays a 5% annual coupon. The company expects investors to pay $684.5 for the 20-year bond. The expected flotation cost per bond is $50, and the firm is in the 30% tax bracket. Compute the firms after-tax cost of new debt. Round your calculations to the nearest 0.01%

Answer choices:

5.41%

6.31%

4.96%

8.86

Show your work.