2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing. Andalusian Limited (AL) can borrow funds at an interest rate of 9.70% for a period of six years. Its marginal federal-plus-state tax rate is 25%. AL's after-tox cost of debt is (rounded to two decimal places). At the present time, Andalusian Limited (AL) has 15 -year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,136.50 per bond, carry a coupon rate of 12%, and distnbute annual coupon payments. The company incurs a federal-plus. stote tax rate of 25%. If AL wants to issue new debt, what would be a reosonable estimate for its after-tox cost of debt (rounded to two decimal. places)? (Note: Round your YTM rate to two decimal place.) 9.17% 6.80% 7.64% 6.11% 2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing. Andalusian Limited (AL) can borrow funds at an interest rate of 9.70% for a period of six years. Its marginal federal-plus-state tax rate is 25%. AL's after-tox cost of debt is (rounded to two decimal places). At the present time, Andalusian Limited (AL) has 15 -year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,136.50 per bond, carry a coupon rate of 12%, and distnbute annual coupon payments. The company incurs a federal-plus. stote tax rate of 25%. If AL wants to issue new debt, what would be a reosonable estimate for its after-tox cost of debt (rounded to two decimal. places)? (Note: Round your YTM rate to two decimal place.) 9.17% 6.80% 7.64% 6.11%