Attempts: Keep the Highest /3 2. An overview of a firm's cost of debt To calculate the after-tax cost of debt, multiply the before-tax cost of debt by (1-1) Blue Hamster Manufacturing (BHM) can borrow funds at an interest rate of 7.30% for a period of eight years. Its marginal federal-plus-stat tax rate is 40%. BHM's after-tax cost of debt is 4.38% (rounded to two decimal places). At the present time, Blue Hamster Manufacturing (BHM) has a series of ten-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,495.56 per bond, carry a coupon rate of 10%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 40%. If BHM wants to issue new debt, what would be a reasonable estimat its after-tax cost of debt (rounded to two decimal places)? 02.12% O 2.35% 0 2.70% O 2.82% Grade It Now Save & Contin