To calculate the after-tax cost of debt, multiply the before-tax cost of debt by (1-T). Perpetualcold Refrigeration Company (PRC) can borrow funds at an interest rate of 7.30% for a period of six years. Its marginal federal-plus-state ta rate is 25%, PRC's after-tax cost of debt is (rounded to two decimal places). At the present time, Perpetualcold Refrigeration Company (PRC) has 20-year noncallable bonds with a face value of $1,000 that are outstanding, These bonds have a current market price of $1,382.73 per bond, carry a coupon rate of 13%, and distribute annual coupon payments. The company Incurs a federal-plus-state tax rate of 25%. 18 PRC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.) 6.64% 7.97% 7.64% 5.98