Belton Distribution Company is issuing a $1,000 par value bond that pays 7.0 percent annual interest and matures in 15 years that is paid semiannually. Investors are willing to pay $900 for the bond. The company is in the 18 percent marginal tax bracket. What is the firm's after-tax cost of debt on the bond?

		6.13%
		5.50%
		6.70%
		7.50%