Galvatron Metals has a bond outstanding with a coupon rate of 5.8 percent and semiannual payments. The bond currently sells for $1,954 and matures in 22 years. The par value is $2,000 and the company's tax rate is 35 percent. What is the company's aftertax cost of debt?

Multiple Choice

• 2.99%

• 4.12%

• 3.59%

• 3.89%

• 2.80%