The outstanding bonds of Theresa's Flower Garden are priced at $1,013 and mature in 12 years. These bonds have a face value of $1,000, a coupon rate of 6.5 percent, and pay interest semiannually. The tax rate is 23 percent. What is the after-tax cost of debt?

Question 4 options:

	4.93 percent
	4.88 percent
	4.41 percent
	4.22 percent
	4.35 percent