Electronic Products Has 22,500 Bonds Outstanding That Are Currently Quoted

Multiple Choice

Electronic Products has 22,500 bonds outstanding that are currently quoted at 101.6.The bonds mature in 8 years and pay an annual coupon payment of $90.What is the firm's aftertax cost of debt if the applicable tax rate is 34 percent?

A) 5.47 percent
B) 4.79 percent
C) 5.75 percent
D) 6.98 percent
E) 6.67 percent