ABC Company has bonds outstanding with 27 years to maturity and they're being sold at 96% of $1,000 face value. The coupon rate is 7% annually. At a tax rate of 21%, find the bank's after-tax cost of debt.

A. 5.80%

B. 5.22%

C. 6.38%

D. 8.12%

E. 7.34%