Omni Consumer Products Company $($OCP$)$ can borrow funds at an interest rate of $9\mathrm{.}70\%$ for a period of eight years. Its marginal federal$-$plus$-$state tax rate is $25\%.$ OCP's after$-$tax cost of debt is $($rounded to two decimal places$).$

At the present time, Omni Consumer Products Company $($OCP$)$ has $20-$year noncallable bonds with a face value of $$1,000$ that are outstanding. These bonds have a current market price of $$1,181\mathrm{.}96$ per bond, carry a coupon rate of $13\%,$ and distribute annual coupon payments. The company incurs a federal$-$plus$-$state tax rate of $25\%.$ If OCP 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.$)$

$9\mathrm{.}67\%$

$7\mathrm{.}25\%$

$6\mathrm{.}45\%$

$8\mathrm{.}06\%$