A corporate bond has a face value of $1000 and a coupon rate of 9%. The bond matures in 14 years and has a current market price of $946. If the corporation sells more bonds it will incur flotation costs of $26 per bond. If the corporate tax is 35% what is the after tax cost of debt capital?

A. 8.18%

B. 6.56%

C. 7.31%

D. 5.57%