On January 1, Year 1, Brown Co. issued bonds with a face value of $113,000, a stated rate of interest of 9%, and a 20-year term to maturity. The bonds were issued at face value. If Bluefield's tax rate is 40%, what is the after-tax cost of borrowing related to these bonds for Year 1?

On January 1, Year 1, Brown Co. issued bonds with a face value of $113,000, a stated rate of interest of 9%, and a 20-year term to maturity. The bonds were issued at face value. If Bluefield's tax rate is 40%, what is the after-tax cost of borrowing related to these ponds for Year 1? Multiple Choice o ) $4,068 o $6,102 o $10,170 o $14,238