Jiminys Cricket Farm issued a 20-year, 7 percent semiannual bond four years ago. The bond currently sells for 98 percent of its face value. The companys tax rate is 25 percent. What is the aftertax cost of debt?

Select one:

A. 7.68%

B. 3.61%

C. 7.21%

D. 5.41%

E. 5.89%