To caiculate the after-tax cost of debt, multiply the before-tax cost of debt by (1T). Andalusian Limited (AL) Can borrow funds at an interest rate of 9.70% for a period of six years. Its marginal federal-plus-state tax rate is 25%. AL's tier-tax cost of debt is (rounded to two decimal places). At the preenent time, Andalusian Limited (AL) has 10 -year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,092.79 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federal-picr. Wate tax rate of 25%. If AL wants to issue new debt, what would be a reasanable estimate for its after-tax cost of debt (rounded to two decimal phrcas)? (Note: Round your YTM rate to two decimal place.) \begin{tabular}{|l} \hline 8.21% \\ \hline 6.43% \\ \hline 7.14% \\ \hline 5.71% \end{tabular}