Blackwater Adventures Has a Bond Issue Outstanding That Matures in Sixteen

Blackwater Adventures has a bond issue outstanding that matures in sixteen years. The bonds pay interest semi-annually. Currently, the bonds are quoted at 103 % of face value and carry a 9 % coupon. The firm's tax rate is 34 %. What is the firm's after-tax cost of debt?

A) 5.19 %
B) 5.71 %
C) 7.86 %
D) 8.65 %
E) 11.41 %