Rockingham Motors issued a 30-year, 8 percent semiannual bond 3 years ago. The bond currently sells for 103.1 percent of its face value. The company's tax rate is 34 percent. What is the aftertax cost of debt?
- 2.72 percent
- 5.10 percent
- 5.69 percent
- 5.72 percent
- 5.99 percent