$($Chapter $13)$ A firm has outstanding debt with a coupon rate of $7\%,$ nine years maturity, pays interest semi$-$annually, and a quoted price that is $98\%$ of par value. What is the approximate aftertax cost of debt if the marginal tax rate of the firm is $25\%?$

$3\mathrm{.}65\%$

$7\mathrm{.}31\%$

$2\mathrm{.}74\%$

$5\mathrm{.}48\%$

$5\mathrm{.}25\%$