Ellie's Boutique has a bond issue outstanding that matures in fourteen years. The bonds pay interest semi-annually. Currently, the bonds are quoted at 98 percent of face value and carry an 8 percent coupon. The firm's tax rate is 35 percent. What is the firm's aftertax cost of debt?

2.88 percent

5.36 percent

5.45 percent

8.24 percent

10.72 percent