New Products, Inc. has bonds outstanding that mature in 5 years, have an 11 percent coupon, and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,250. What is the companys post-tax cost of debt if its tax rate is 21 percent?

Group of answer choices

1.89 percent

2.39 percent

3.09 percent

4.10 percent

5.19 percent