Leary Inc Has 10-Year, 9 Percent Semiannual Coupon Bonds Outstanding That

Leary Inc. has 10-year, 9 percent semiannual coupon bonds outstanding that were issued by its French subsidiary. The bonds are guaranteed by Leary. The bonds have a €1,000 face value and sell for €956.48. Leary's tax rate is 40 percent. If the euro is expected to depreciate by 0.01739, what is Leary's after-tax cost of foreign-denominated debt to U.S. investors?

A) 3.61%
B) 3.97%
C) 4.13%
D) 4.38%
E) 4.50%