You are assessing the cost of debt of a highly profitable firm in the US to uses in the cost of capital. The firm has $1 billion in bank loans outstanding, carrying an interest rate of 4% and a remaining maturity 8 years, the loans were taken on a couple of years ago when interest rates were lower. The current risk-free rate is 5% AND YOU ANTICIPATE THAT YOUR DEFAULT SPREAD to borrow long term is 2%. What is the after tax cost of debt for this firm if the firm is taxed at the 2020 US marginal tax rate? a) 4.3% B)5% C)3.2% D)7% E)4% F)5.5%