QRM, Inc.'s marginal tax rate is 35%. It can issue 10-year bonds with an annual coupon rate of 7% and a par value of exist1,000. After exist12 per bond flotation costs, new bonds will net the company exist966 in proceeds. Determine the appropriate after-tax cost of new debt for the firm to use in a capital budgeting analysis. A) 7.50% B) 7.68% C) 4.87% D) 4.99%