A company is planning to issue 15-year bobds at a price of $1,488.67 with 15.00% coupon rate to finance a project with debt. The current marginal tax rate is 25%, but it is expected to increase to 40%. By how much would the component cost of debt change if the marginal tax rate increases from 25% to 40%?

-1.4%

-1.3%

-1.6%

-1.5%

4.5%