Galvatron Metals has a bond outstanding with a coupon rate of 6.6 percent and semiannual payments. The bond currently sells for $1,898 and matures in 16 years. The par value is $2,000 and the company's tax rate is 39 percent. What is the company's aftertax cost of debt?

a. 6.54%

b. 7.00%

c. 3.94%

d. 4.52%

d. 4.27%