Here is the same problem picture without the answer option in the way like in the first pic.

2. An overview of a firm's cost of debt To calculate the after-tax cost of debt, multiply the before-tax cost of debt by (1-1) Blue Hamster Manufacturing (BHM) can borrow funds at an interest rate of 12. (1 - 1) period of seven years. Its marginal federal-plus-state tax rate is 35%. BHM's after-tax cost of debt is (rounded to two decimal (1 +T) At the present time, Blue Hamster Manufacturing (BHM) has a series of five-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,438.04 per bond, carry a coupon rate of 14%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate 35%. BHM wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? 3.08% O 2.14% 2.41% O 2.68% 2. An overview of a firm's cost of debt To calculate the after-tax cost of debt, multiply the before-tax cost of debt by (1-1). Blue Hamster Manufacturing (BHM) can borrow funds at an interest rate of 12.50% for a period of seven years. Its marginal federal-plus-state tax rate is 35%. BHM's after-tax cost of debt is (rounded to two decimal places). At the present time, Blue Hamster Manufacturing (BHM) has a series of five-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,438.04 per bond, carry a coupon rate of 14%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 35%. If BHM wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? 3.08% O 2.14% O 2.41% 2.68%