Johnny Sins has outstanding corporate debt (face value of $1,000 per bond) that pays an 8.52% coupon rate semiannually and will mature in 23 years. The bonds are currently trading at $508 each. If the firm's tax rate is 26%, what is the firm's effective cost of debt?

A)

13.42%

B)

17.89%

C)

6.30%

D)

13.24%

E)

6.35%