The is the interest rate that a firm pays on any new debt financing. Bedrick Co. can borrow at an interest rate of 7.3% for a period of six years. Its marginal federal-plus-state tax rate is 45%. What is Bedrick's after-tax cost of debt? Bedrick Co. has outstanding 10-year noncallable bonds with a face value of $1,000. These bonds have a current market price of $1, 092.79, a coupon rate of 11%, and annual coupon payments. The company faces a tax rate of 45%. If the company wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt? 6.29% 4.72% 5.24% 4.19%