Suppose a Foreign Investor Who Holds Tax-Exempt Eurobonds Paying 7

Suppose a foreign investor who holds tax-exempt Eurobonds paying 7.00% is considering investing in an equivalent-risk domestic bond in a country with a 28.00% withholding tax on interest paid to foreigners.If 7.00% after-tax is the investor's required return,what before-tax rate would the domestic bond need to pay to provide the required after-tax return?

A) 8.46%
B) 10.40%
C) 11.96%
D) 7.29%
E) 9.72%