Holly's Hominy Inc. has two bonds outstanding. The company's tax rate is 32 percent. Holly's first bond pays a 6 percent coupon. The bond's face value is $22 million and the bond sells for 89 percent of its face value. The bond's yield to maturity is currently 6.914%. The second debt issue is a zero coupon bond with 4 years left to maturity. This bond's yield to maturity is currently 5.657%. The face value of this issue is $75 million and the bonds sell for 80 percent of face value. Required: What is the company's after-tax cost of debt? Note: there is no need to convert rates from an APR to an EAR. (Do not round your intermediate calculations.) (Click to select) 4.06% 4.44% 2.98% 3.85% 4.66%