The outstanding debt of XTZ has 10 years to maturity, a current yield of 6%, face value of $100 and a price of $90. What is the after-tax cost of debt if the tax rate is 35%? (hint: first calculate coupon payment, then YTM, thn after-tax cost of debt)

Group of answer choices

4.43%

6.81%

5.31%

5.31%