Q3) A corporation's 7% coupon bond sells for $850 per $1000 par value. It pays coupons semiannually and matures in 12 years. The corporate tax rate is 30%. What is the corporation's after-tax cost of debt? Please do by hand so I can see the steps.

A) 9.07%

B) 7.35%

C) 6.35%

D) 4.54%

E) 10.50%