The Bet-R-Bilt Company Has a Six-Year Bond Outstanding with a 5

The Bet-r-Bilt Company has a six-year bond outstanding with a 5 percent coupon.Interest payments are paid semi-annually.The face amount of the bond is $1,000.This bond is currently selling for 98 percent of its face value.What is the company's pre-tax cost of debt?

A) 4.72 percent
B) 5.31 percent
C) 5.35 percent
D) 5.39 percent
E) 5.42 percent