Horseless Carriages Issued Twenty-Year,7 Per Cent Semi-Annual Bonds Eleven Years

Horseless Carriages issued twenty-year,7 per cent semi-annual bonds eleven years ago.The bonds currently sell at 101.3 per cent of face value.What is the firm's after tax cost of debt if the tax rate is 34 per cent?

A) 4.49 per cent
B) 6.71 per cent
C) 4.87 per cent
D) 6.80 per cent
E) 6.83 per cent