The Outstanding Bonds of Tech Express Are Priced at $989

The outstanding bonds of Tech Express are priced at $989 and mature in 8 years. These bonds have a 6 percent coupon and pay interest annually. The firm's tax rate is 39 percent. What is the firm's aftertax cost of debt?

A) 3.01 percent
B) 3.22 percent
C) 3.35 percent
D) 3.77 percent
E) 4.41 percent