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 firm's after-tax cost of new debt. Round your calculations to the nearest 0.01%.

Group of answer choices

5.86%

6.31%

4.96%

5.41%