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KSS has $1000 par value bonds with an 8% coupon rate and coupons paid annually that mature in 20 years. The bonds are selling for

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KSS has $1000 par value bonds with an 8% coupon rate and coupons paid annually that mature in 20 years. The bonds are selling for $1,100. KSS has an average tax rate of 30%. KSS is in the 40% marginal tax bracket. What is the after tax cost of debt? O 4.2396 07.05% O 4.94% O 3.53%

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