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The firm has 7 , 5 0 0 bonds outstanding with a face value of $ 1 , 0 0 0 per bond. The bonds

The firm has 7,500 bonds outstanding with a face value of $1,000 per bond. The bonds carry a 9 percent coupon, pay interest semiannually, and mature in 8 years. The bonds are selling at 98 percent of face value. The company's tax rate is 34 percent. What is the firm's after-tax cost of debt?
3.42 percent
4.84 percent
6.18 percent
8.25 percent
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