Current Attempt in Progress

Sheridan has determined that it could issue $$1,000$ face value bonds with an $8$ percent coupon paid semiannually and a five$-$year maturity at $$900$ per bond. If Sheridan's marginal tax rate is $30$ percent, its after$-$tax cost of debt is closest to:

$7\mathrm{.}4$ percent.

$7\mathrm{.}2$ percent.

$7\mathrm{.}8$ percent.

$7\mathrm{.}6$ percent.