Crane has determined that it could issue $1150 face value bonds with an 8 percent coupon paid semiannually and a 5-year maturity at $1034.70 per bond. If Cranes marginal tax rate is 40 percent, its after-tax cost of debt is closest to:

answers: a; 6.1% b; 6.4% c; 6.7% d; 6.0%