Attempts: Keep the Highest: 13 2. An overview of a firm's cost of debt The is the interest rate that a firm pays on any new debt financing. Perpetualcold 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 35%. PRC's after-tax cost of debt is (rounded to two decimal places). At the present time, Perpetualcold Refrigeration Company (PRC) has 10-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,092.79 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 35%. 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 5.57% 6.19% O 7.12% O 7.43% Grade It Now Save & Continue Continue without saving