Builtrite Furniture is considering sells bonds for a plant expansion. Currently, Builtrite believes that it could sell 20 year maturity, $1000 par value, 5 3/8% coupon bonds after flotation costs for $1075. If Builtrite is in the 34% marginal tax bracket, what is the after-tax cost for the bonds?

A) 2.35%

B) 3.14%

C) 4.76%

D) 5.69%