Three Waters Company (TwC) can borrow funds at an interest rate of 7.30% for a period of five years. Its marginal federal-plus-state tax rate is 25%. TWC's after-tax cost of debt is At the present time. Three Waters Company (TWC) has 10 -year noncalfable 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 federalplus-state tax rate of 25%. If TwC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Reund your YTM rate to two decimal place.) 5.27% 4.74% 4.2266 5.06% \begin{tabular}{l|l|l} \hline pe, Three Wate & 4.66% & any (TWC) has 10 \\ price of $1,27 & 5.48% & pond, carry a coupe \\ e of 25%. If T & 7.30% & to issue new debt, rate to two decima \\ (Note: Round \end{tabular}