Jeremiah Electric Company's noncallable bonds were issued several years ago and now have $20$ years to maturity. These bonds have an $8\mathrm{.}25\%$ annual coupon, paid semiannually, sells at a price of $$825,$ and has a par value of $$1,000.$ If the firm's tax rate is $25\%,$ what is the component cost of debt for use in the WACC calculation?

a$.10\mathrm{.}34\%$

b$.8\mathrm{.}40\%$

c$.5\mathrm{.}17\%$

d$.4\mathrm{.}44\%$

e$.7\mathrm{.}75\%$