Suppose the risk-free rate is 3.5%; on average, an AAA-rated corporate bond carries a credit spread of 0.3%, an A-rated corporate bond carries a credit spread of 1.1%, and a B-rated corporate bond carries a credit spread of 3.9%. Company XYZ's outstanding debt is rated BBB by rating agencies, what would be the cost of debt for XYZ based on prevailing market rates? Multiple Choice 6.5% 3.8% o 74% 0 4.6%