VCL Inc. has a bond outstanding with 8 years to maturity, currently quoted at 103.8 percent of face value. The issue makes semiannual payments and has an annual coupon rate of 6.5 percent. What is the aftertax cost of debt if the tax rate is 21 percent?

Group of answer choices

4.17 percent

5.68 percent

4.66 percent

5.02 percent

5.95 percent