Gould Design has $1,000 face value bonds outstanding with 17 years to maturity, a coupon rate of 5 percent, semiannual interest payments, and a current price of $987.78. What is the aftertax cost of debt if the tax rate is 21 percent?

a) 5.11%

b) 4.04%

c) 5.09%

d) 4.02%

e) 2.01%

Please show how to get the result in a financial calculator.