Company B issued an 8 percent coupon semiannual bond that matures in 25 years. Face value of the bond is $1,000. The bond currently sells for 90 percent of its face value. What is the after-tax cost of debt if the company's tax rate is 36 percent?

5.63 percent

5.85 percent

5.92 percent

4.50 percent

5.77 percent