Galvatron Metals has a bond outstanding with a coupon rate of 5.9 percent and semiannual payments. The bond currently sells for $945 and matures in 21 years. The par value is $1,000 and the company's tax rate is 21 percent. What is the company's aftertax cost of debt?

Multiple Choice

• 3.83%

• 4.39%

• 5.04%

• 2.98%

• 3.19%