A corporate bond has a face value of $1,000 and a coupon rate of 6.5%, paid semianually . The bond matures in 18 years and has a current market price of $911. If the corporation sells more bonds it will incur flotation costs of $64 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital? A. 5.29% B. 6.49% C.7.75% D.8.01%