Oxford Enterprises Incorporated is determining the cost of debt to use in its weighted average cost of capital. It has recently issued a 10-years, 6 percent semi-annual coupon bond for $864. The bond has a maturity value of $1,000. If the marginal tax rate is 35 percent, the cost of debt they should use in their calculation is close to:

A.2.6%

B.3.9%

C.5.2%