Beckham Corporation has semiannual bonds outstanding with nine years to maturity that are currently priced at $794.08. If the bonds have a coupon rate of 7.25 percent, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 35 percent? Complete the calculation using the effective annual interest rate (EAR) for the bond.

A) 7.084%

B) 11.750%

C) 12.095%

D) 7.277%