Builtrite Furniture is considering sells bonds for a plant expansion. Currently, Builtrite believes that it could sell 15 year maturity, $1000 par value, 5 3/4% coupon bonds after flotation costs for $1015.If Builtrite is in the 34% marginal tax bracket, what is the after-tax cost for the bonds?

4.20%

5.59%

6.35%

3.69%