On January 1, Year 1, Brown Company issued bonds with a face value of $114,000, a stated rate of interest of 11%, and a 20-year term to maturity. The bonds were
issued at face value. If Brown's tax rate is 40%, what is the after-tax cost of borrowing related to these bonds for Year 1?
Multiple Choice
$17,556
$12,540
$7,524
$5,015