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What is the after-tax cost of debt of a companys bond that has a coupon rate of 10% with semiannual coupons, a maturity of 20

What is the after-tax cost of debt of a companys bond that has a coupon rate of 10% with semiannual coupons, a maturity of 20 years, a par value of $1,000, and is currently selling at $1,100? The companys tax rate is 40%.

a. 4.46%

b. 5.35%

c. 10%

d. 6%

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