The outstanding bonds of The Purple Fiddle are priced at $898 and mature in nine years. These bonds have a 6 percent coupon and pay interest annually. The firm's tax rate is 35 percent. What is the firm's after-tax cost of debt?

A) 4.94%

B) 5.24%

C) 5.30%

D) 7.18%

E) 7.61%

Please show work.