The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for $925 and the company's tax rate is 40%. The flotation cost is 3% of the market price. What is the after-tax cost of debt with floatation cost using the constant yield method? 4.646% 7.743% 8.0415% 4.825%