At the present time, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of exist1,000 that are outstanding. These bonds have a current market price of exist1, 555.38 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 45%. If WPC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? 3.46% 2.71% 3.01% 2.41%