Decline, Inc. is trying to determine its cost of debt. The firm has a debt issue outstanding with 10 years to maturity that is quoted at 97 percent of face value. The issue makes semiannual coupon payments and the coupon rate is 10 percent (annually). What is the aftertax cost of debt if the tax rate is 35 percent?

7.22 percent

4.99 percent

6.22 percent

6.82 percent

5.82 percent