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Sandhill has determined that it could issue $ 1 , 0 0 0 face value bonds with an 9 percent coupon paid semiannually and a

Sandhill has determined that it could issue $1,000 face value bonds with an 9 percent coupon paid semiannually and a five-year maturity at $900 per bond. If Sandhill's marginal tax rate is 30 percent, its after-tax cost of debt is closest to:
8.2 percent.
8.4 percent.
8.0 percent.
8.6 percent.

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