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Rockingham Motors issued a 20-year, 8 percent semiannual bond 3 years ago. The bond currently sells for 98.6 percent of its face value. The company's

Rockingham Motors issued a 20-year, 8 percent semiannual bond 3 years ago. The bond currently sells for 98.6 percent of its face value. The company's tax rate is 35 percent. What is the aftertax cost of debt?

5.43 percent
5.69 percent
2.72 percent
5.99 percent
5.72 percent

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