A company issues a 20-year semi-annual coupon payment bond with a coupon rate of 10.00%. It receives net $1,175.00 for each newly issued bond. The tax rate is 40%. What is the after-tax cost of debt for the company?

3.01%

3.45%

3.91%

4.40%

4.92%

5.48%

6.07%

6.71%