The Outstanding Bonds of the Purple Fiddle Are Priced at $898

The outstanding bonds of The Purple Fiddle are priced at $898 and mature in nine years.These bonds have a 6 percent coupon and pay interest annually.The firm's tax rate is 35 percent.What is the firm's after-tax cost of debt?

A) 4.94 percent
B) 5.24 percent
C) 5.30 percent
D) 7.18 percent
E) 7.61 percent