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Builtrite Furniture is considering sells bonds for a plant expansion. Currently, Builtrite believes that it could sell 15 year maturity, $1000 par value, 4 1/8%

Builtrite Furniture is considering sells bonds for a plant expansion. Currently, Builtrite believes that it could sell 15 year maturity, $1000 par value, 4 1/8% coupon bonds after flotation costs for $1055.If Builtrite is in the 34% marginal tax bracket, what is the after-tax cost for the bonds?

Group of answer choices

2.39%

3.62%

3.96%

3.23%

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