Endrun Corporation has $1,000 par value bonds currently selling for $980. The bonds have a coupon rate of 10% and are paying interest semiannually. The bonds are due to reach maturity in 15 years. If Endrun's tax rate is 40%, what cost of debt should be used in arriving at the firm's weighted-average cost of capital?

Select one:

A. 4.10%

B. 6.16%

C. 8.95%

D. 10.26%