The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a 8.00% annual coupon that is paid semiannually. The bond currently sells for $850 and the company's tax rate is 40%. What is the after-tax cost of debt for use in the WACC calculation?

answers:

4.16%

4.46%

4.79%

5.39%

5.83%