Assistance with this practice problem would be greatly appreciated. Most interested in the work to solve along with answer.

Rho Corp. issues a bond at a price of $1,125 with a yield to maturity of 5.48%. The bonds have an annual coupon rate of 9%, pay interest semiannually, and mature in 4 years. Flotation costs associated with this issue are $25 resulting in an increase in the cost of debt to 6.14%. If the firm is in the 40% tax bracket, what is the after-tax cost of debt to the firm? 3.29% 3.69% O 9.00% O 5.40%