Several years ago, the ABC Company sold a $1,000 par value bond that now has 15 to maturity and a 6.00% annual coupon that is paid semiannually. The bond currently sells for $890 and the company’s tax rate is 30%. What is the after-tax cost of debt?
Group of answer choices
5.05%
7.21%
2.52%
2.27%
3.61%