Jiminy's Cricket Farm issued a 30-year, 6 percent, semiannual bond 8 years ago. The bond currently sells for 97 percent of its face value. What is the after-tax cost of debt if the company's tax rate is 32 percent?
- 4.00 percent
- 4.25 percent
- 4.70 percent
- 5.75 percent
- 6.25 percent