A firm offers a 10- year maturity bond with $1,000 face value and 5.25% coupon rate. The current market price for the bond is $1025. Selling the bonds costs the firm $48 per share. What is the after-tax cost of this debt, assuming a 34% corporate tax
A 5.56%
B. 3.66%
C. 6.07%
D. 32.11%