ABC Company has publicly traded $1,000 par value, 6% semiannual coupon bonds which mature in 16 years. These bonds have a current market price of $1075. The company also has preferred stock with a $70 par and 6% annual dividend. The market has priced the preferred stock at $89.ABC 's common stock has a beta of 1.5 . You estimate the risk-free rate to be 3% and the required return on the market to be 14%. The company's average tax rate is 30%. What is this company's after-tax cost of debt? 3.07% 3.91% 3.38% 3.71%