Ivanhoe has determined that it could issue $1000 face value bonds with an 10 percent coupon paid semiannually and a 5-year maturity at $913.34 per bond. If Ivanhoes marginal tax rate is 36 percent, its after-tax cost of debt is closest to:

7.5 percent.

8.2 percent.

7.6 percent.

7.9 percent.

Choose answer from above