Wealth Inc. sold a 20-year bond issue 12 years ago. It pays an 8 percent annual coupon and has a $1,000 face value. If the current price per bond is $893.30, what is the firm's after-tax cost of debt (assuming a tax rate of 25 percent)?

8.0%

9.5%

10.0%

7.5%

none of the proposed answers