The MNO Company believes that it can sell long-term bonds with a 6% coupon but at a price that gives a

yield-to-maturity of 9%.

If such bonds are part of next year's financing plans, which of the following should be

used for bonds in their after-tax (40%) cost-of-capital calculation?

A.

3.6%

B.

5.4%

C.

4.2%

D.

6%