Builtrite Furniture is considering selling bonds for a plant expansion. Currently, Builtrite believes that it could sell 20 year maturity, $1000 par value, 4 7/8% coupon bonds after flotation costs for $1020. If Builtrite is in the 34% marginal tax bracket, what is the after-tax cost for the bonds?

		3.7%
		3.5%
		3.3%
		3.1%