Blossom has determined that it could issue $1450 face value bonds with an 9 percent coupon paid semiannually and a 5-year maturity at $1269.69 per bond. If Blossoms marginal tax rate is 35 percent, its after-tax cost of debt is closest to: 8.3 percent. 8.0 percent. 7.7 percent. 7.6 percent.