2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing. Water and Power Company (WPC) can borrow funds at an interest rate of 11.10% for a period of six years. Its marginal federal-plus-state tax rate is 25%. WPC's after-tax cost of debt is (rounded to two decimal places). At the present time, water and Power Company (WPC) has 20-year noncollable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,362.73 per bond, carry a coupon rate of 13%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 25%. WPC 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.) 6.64% 7.646 O 5.31% 5.98% Attempts Average/3 2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing Water and Power Company (WPC) can borrow funds at an interest rate of 11.10% for a period of six years. Its marginal federal-plus-state tax rate is 25% WPC's after-tax cost of debt is (rounded to two decimal places) At the present time, Water and Power Company (WPC) has 20-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1.382.73 per bond, carry a coupon rate of 13%, and distribute annual coupon payments. The company incursa federail-plus-state tax rate of 25%. If WPC wants to sue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded tu two decimal places) (Note: Hound your YTH rate to two decimal place.) 7.645 05319 5.95%