2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt firancing. Thre can borrow funds at an interest rate of 12.50% for a period of six years. Its margiral federal-plus-state tax rate is 254 ebt is (rounded to two decimal places). At the present time, Three Waters Company (TWC) has 15-year noncaliable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,555.38 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federalplus-state taix rate of 25\%. If TWC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note- Round your YTM rate to two decimal place.) 4.11% 3.70% 4.73% 3.2904 The is the interest rate that a firm pays on any new debt financing: Three Waters Company (TWC) can borrow funds at an interest rate of 12.50% for a period of six years. Its marginal federal-phus-state tax rate is 25\%. TWC's atter-tax cost of debt is (rounded to two dedimal places). At the present time, Three Waters Co 9.38% C) has 15-vear noncallable bonds with a face value of 31,000 that are outstanding. These bonds have a current market price of $1,555.38 of 10.32\% pryy a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federal- 4.11% 10,79% 3.70\% 4.73\% 3.294 Three Waters Company (TWC) can borrow funds at an interest rate of 12.50% for a period of six years. Its. marginal federal-plus-state tax mte is 25%. TWC's after-tax cost of debt is (rounded to two decimal places). At the present time, Three Waters Compary (TWC) has 15 -year noncallable bonds with a face value of $1, 000 that are outstanding. These bonds have a current market price of $1,555.38 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federalplus-state tax rate of 25%. If TWC wants to issue new debt, what would be a reasonable -stimate for its after-tax cost of debt (rounded to two dedmal olaces)? (Note: Round your YIM rate to two decimal place.) 4.114 3.704 4.734 3.2084