1. A firm needs to raise $ 4mn dollars in new debt. Its existing bond with a par value of $1,000 has 10 years to maturity and a 8 percent coupon paid semi-annually sells for $1075. The tax rate is 21%. What is the cost after-tax cost of debt?

   		5.49%
   		5.76%
   		6.03%
   		6.28%