signment 10-The Cost of Capital Due on Mar 26 at 11.59 PM EDT Late Submission until Apr24 Activity Information he 596 penalty ; Attempts: Keep the Highest: /3 3. Cost of debt Aa Aa To calculate the after-tax cost of debt, multiply the before-tax cost of debt by 1-T Omni Consumer Products Company (OCP) can borrow funds at an interest rate of 11.10% for a period of four years Its marginal federal-plus-state tax rate is 35%, OCP's after-tax cost of debt is places). (rounded to two decima At the present time, Omni Consumer Products Company (OCP) has 10-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,278.41 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 OCP wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? ? 4.57% 3.66% ? 5.26% 5.48% Grade it Now ave&Continu