Advance plc is trying to determine its cost of debt. The firm has a debt issue outstanding with 7 years to maturity that is quoted at 95 percent of face value. The issue makes semiannual payments and has a coupon rate of 4.2 percent annually. If the tax rate is 24 percent, what is the after-tax cost of debt? a) 5.057% b) 6.887% c) 4.445% d) 3.844% 12:18 PM