2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing. Western Gas & Electric Company (WGC) can borrow funds at an interest rate of 12,50% for a period of seven years. Its marginal federal-plus-state tax rate is 30%. WGC's after-tax cost of debt is (rounded to two decimal places) At the present time, Western Gas & Electric Company (WGC) has 10-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,092.79 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federal-plus-state taxtate of 30%. If WGC wants to Issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? O 6.66% 5.99% O 7.66% 5.33%