Galvatron Metals has a bond outstanding with a coupon rate of 5.9 percent and semiannual payments. The bond currently sells for $1,947 and matures in 21 years. The par value is $2,000 and the company's tax rate is 21 percent. What is the company's aftertax cost of debt?

Multiple Choice

• 4.84%

• 3.89%

• 3.06%

• 3.39%

• 2.86%