Jays Bakery has a bond issue outstanding that matures in four years. The bonds pay interest semi-annually. Currently, the bonds are quoted at 102.3 percent of face value and carry a coupon rate of 9 percent. What is the firm's aftertax cost of debt if the tax rate is 35 percent?

6.88 percent

5.40 percent

5.63 percent

8.31 percent

8.66 percent