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Salvation Metals has a bond outstanding with a coupon rate of 6.8 percent and semiannual payments. The bond currently sells for $1,884 and matures in

Salvation Metals has a bond outstanding with a coupon rate of 6.8 percent and semiannual payments. The bond currently sells for $1,884 and matures in 18 years. The par value is $2,000 and the company's tax rate is 21 percent. What is the company's aftertax cost of debt?

3.69%

5.84%

4.69%

3.45%

4.09%

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