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CVS Health has a 30-year bond outstanding that makes semi-annual coupon payments. The bond has a 4.25% annual coupon rate and sells for 123.94% of

CVS Health has a 30-year bond outstanding that makes semi-annual coupon payments. The bond has a 4.25% annual coupon rate and sells for 123.94% of its $1000 par value. The company's marginal tax rate is 25%. What is the estimate for CVS's after-tax cost of debt based on this information?

A.3.05%

B.2.51%

C.2.27%

D.3.19%

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