Southern Distributors has two bond issues outstanding. The first issue has a coupon rate of 11 percent, matures in 2 years, has a total face value of $5 million, and is quoted at 111 percent of face value. The second issue has an 8.5 percent coupon, matures in 13 years, has a total face value of $25 million, and is quoted at 98 percent of face value. Both bonds pay interest semiannually. What is the firm's weighted average aftertax cost of debt if the tax rate is 34 percent?

	4.78 percent
		8.09 percent
		7.54 percent
		7.97 percent
		5.34 percent