an overview of a firms cost of debt

Three Waters Company (TWC) can borrow funds at an interest rate of 10 204 for a period of four years. Its marginal federal-plus-state tax rate is 35%. TWC after-tax cost of debt is (rounded to two decimal places) At the present time, Three Waters Company (TWC) 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 incurs a federal- plus-state tax rate of 35%. IF TWC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places) 6.61% 5.18% 5.75% 6.9096