Several years ago the Jakob Company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for $875, and the company's tax rate is 40%. What is the after tax cost of debt for use in the WACC calculation? Do not round your intermediate calculations. a. 4.97% b.3.78% C.4.92% d. 5.87% e. 4.58%