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Business, 26.11.2019 03:31 smilingntn33p7pqpp

Jiminy's cricket farm issued a 30-year, 8 percent semi-annual bond 3 years ago. the bond currently sells for 82 percent of its face value. the book value of the debt issue is $15 million. the company's tax rate is 32 percent.

in addition, the company has a second debt issue on the market, a zero coupon bond with 3 years left to maturity; the book value of this issue is $77 million and the bonds sell for 79 percent of par.
(a) what is the company's total book value of debt? (do not round your intermediate calculations.)
(b) what is the company's total market value of debt? (do not round your intermediate calculations.)
(c) what is your best estimate of the aftertax cost of debt?

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