Builtrite has come up with the following capital structure which management belleves is optimal: Bonds: Builtrite is pfanning on offering a $1000 par value, 20-year, 9% coupon bond with an expected selling price of $1035. Issuance costs would amount to $25 per bond. Assume a 40% tax bracket. The after-tax cost of debt is: 5.33% 6.25% 8.89% 10.42%