CW Solar Inc.'s noncallable bonds were issued several years ago and now have 16 years to maturity. These bonds have a 7.85% annual coupon, paid quarterly, sells at a price of $1,035, and has a par value of $1,000. If the firm's tax rate is 40%, which of the following is closest to the after-tax component cost of debt for use in the WACC calculation? A) 3.88% B) 4.48% C) 5.03% D) 6.26% E) 7.12%