Mulen Hotels Corp. has just issued a one-year bond for one of its capital projects. This $1,000 bond has an annual coupon rate of 4.65%. Because the issuance costs of this bond are so small, Mulen plans to ignore the impact of issuance costs on the after-tax cost of debt. If the marginal tax rate is 40.00%, determine the after-tax cost of debt for Mulen Hotel Corp.

a) 3.91%

b) 3.13%

c) 2.79%

d) 2.10%