Question 40 (2.5 points) Jay's Bakery has a bond issue outstanding that matures in five years. The bonds pay interest semiannually. Currently, the bonds are quoted at 105.0 percent of face value and carry a coupon rate of 6.0 percent. What is the firm's after tax cost of debt if the tax rate is 35 percent? 3.76 percent 3.47 percent 4.21 percent 4.68 percent 3.16 percent