A Treasury Bond with 9 years remaining pays interest of $34.50 every six months. The current yield on the bond is 7.77%. Determine the after-tax cost of debt for the firm based on this bonds yield to maturity. Assume the tax rate is 40% Hint: First determine the price of the bond.

Choose from the below answers:

4.29%

5.15%

7.77%

6.875%

8.58%