ABC Corporation can sell $1,000 face value bonds with a coupon rate of 6% for $975. The bonds mature in 10 years and pay interest annualy. The company's marginal tax rate is 20%. The risk free rate of return is 2%. What is the company's after-tax cost of debt for purposes of calculating the company's weighted average cost of capital?

A.

5.08%

B.

5.82%

C.

4.44%

D.

4.93%