To Help Finance a Major Expansion,Castro Chemical Company Sold a Noncallable

To help finance a major expansion,Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity.This bond has a 9.25% annual coupon,paid semiannually,sells at a price of $875,and has a par value of $1,000.If the firm's tax rate is 25%,what is the component cost of debt for use in the WACC calculation? Do not round your intermediate calculations.

A) 6.60%
B) 7.77%
C) 7.30%
D) 6.47%
E) 8.09%