Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity that is quoted at 104 percent of face value. The issue makes semiannual payments and has an embedded cost of 10 percent annually. If the tax rate is 35 percent, what is the after tax cost of debt? 6.13% 7.23% 9.44% 10.64% None of the above