Andalusian Limited (AL) can borrow funds at an interest rate of 9.70% for a period of seven years. Its marginal federal-plus-state tax rate is 25%. AL's after-tax cost of debt is (rounded to two decimal places). At the present time, Andalusian Limited (AL) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus- state tax rate of 25%. If Al 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.) 6.09% 4.87% 7.31% 5.48% of a firm's cost of debt Fore-tax cost of debt is the interest rate that a firm pays on sian Limited (AL) can borrow funds at an interest rate of 9.70% for a cer-tax cost of debt is (rounded to two decimal places). 6.92% present time, Andalusi (AL) has 15-year noncallable bonds t market price of $1,32 6.19% bond, carry a coupon rate of 12%, and cax rate of 25%. If AL W sue new debt, what would be a reasor 7.28% =)? (Note: Round your o two decimal place.) 8.37% O 6.09% O 4.87% O 7.31% O 5.48%