3. Cost of debt To calculate the after-tax cost of debt, multiply the before-tax cost of debt by Perpetua!cold Refrigeration Company (PRC) can borrow funds at an interest rate of 10.20% for a period of four years. Its marginal federal-plus-state tax rate is 30%. PRC's after-tax cost of debt is places). (rounded to two decimal 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 $1,229.24 per bond, carry a coupon rate of 10%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 30%. If PRC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? o 3.32% 0 2.66% 2.99% 3.82%