Mining Corp. is considering issuing long$-$term debt. The debt would have a $30$ year maturity and a $12$ percent coupon rate and make semiannual coupon payments. In order to sell the issue, the bonds must be underpriced at a discount of $2\mathrm{.}5$ percent of face value. In addition, the firm would have to pay flotation costs of $2\mathrm{.}5$ percent of face value. The firm's tax rate is $33$ percent. Given this information, the after$-$tax cost of debt for Mining Corp would be

$6\mathrm{.}38\%$

$12\mathrm{.}76\%$

$4\mathrm{.}98\%$

$8\mathrm{.}48\%$