ABC Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid quarterly, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 40%, what is the cost of debt? (Please round to nearest decimal places)

Group of answer choices

5.08%

5.33%

2.12%

4.23%

none of the above