Ernst's Electrical Has a Bond Issue Outstanding with Ten Years

Ernst's Electrical has a bond issue outstanding with ten years to maturity. These bonds have a $1,000 face value, a 5 % coupon, and pay interest semi-annually. The bonds are currently quoted at 96 % of face value. What is Ernst's pre-tax cost of debt?

A) 4.47 %
B) 4.97 %
C) 5.33 %
D) 5.53 %
E) 5.94 %