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SNZ Inc. has a bond outstanding with a coupon rate of 5.9 percent and semiannual payments. The bond currently sells for $985 and matures in

SNZ Inc. has a bond outstanding with a coupon rate of 5.9 percent and semiannual payments. The bond currently sells for $985 and matures in 21 years. The par value is $1,000 and the company's tax rate is 35 percent. What is the company's aftertax cost of debt?

A. 4.15%

B. 4.39%

C. 3.92%

D. 3.19%

E. 2.98%

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