HighChew Co. is planning to issue new bonds. The bonds will carry an 4% coupon rate (paid annually) and will have 12 years until maturity. Investors buying the bonds will pay $1,050. The investment bank helping float the issue will keep $30 per bond. HighChew Is in the 40% tax bracket. Which of the following is closest to HighChew's after-tax cost of borrowing? 2.27% 3.79% 1.52% 4.02%