2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing Perpetualcold Refrigeration Company (PRC) can borrow funds at an interest rate of 12,50% for a period of five years. Its marginal federal-plus-state tax rate is 25%. PRC's after-tax cost of debt is (rounded to two decimal places). At the present time, Perpetualcold Refrigeration Company (PRC) has 5-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,438.04 per bond, carry a coupon rate of 14%, and distribute annual coupon payments. The company incursa federal-plus-state tax rate of 25%. Ir PRC 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.) 2.48% 3.10% 2.79% 3.229