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Megan's Designs has a bond issue outstanding that matures in 7 years. The bonds pay interest semi-annually. Currently, the bonds are quoted at 102.4 percent

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Megan's Designs has a bond issue outstanding that matures in 7 years. The bonds pay interest semi-annually. Currently, the bonds are quoted at 102.4 percent of face value and carry a 10 percent coupon. What is the firm's aftertax cost of debt if the tax rate is 21 percent? O 6.86% O 7.13% O 7.39% O 7.52%

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