Galena Corporation has a tax rate of 30%. Today they issued bonds with a face value of $1,000 for a price of $926.40. They have a 10-year maturity and a 5% coupon. What is Galenas after-tax cost of debt?

Galena Corporation has a tax rate of 30%. Today they issued bonds with a face value of $1,000 for a price of $926.40. They have a 10-year maturity and a 5% coupon. What is Galenas after-tax cost of debt?

A. 6%

B. 5%

C.3.5%

D.4.2%