What is the company total book value of debt

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Reference no: EM131617178

Jiminy's Cricket Farm issued a 30-year, 7 percent semi-annual bond 4 years ago. The bond currently sells for 93 percent of its face value. The book value of the debt issue is $25 million. The company's tax rate is 33 percent.

In addition, the company has a second debt issue on the market, a zero coupon bond with 4 years left to maturity; the book value of this issue is $84 million and the bonds sell for 79 percent of par.

Required:

(a) What is the company's total book value of debt? (Do not round your intermediate calculations.)

138,200,000

79,800,000

89,610,000

137,360,000

109,000,000

(b) What is the company's total market value of debt? (Do not round your intermediate calculations.)

109,000,000

94,090,500

89,610,000

85,129,500

93,194,400

3.2%

4.89%

4.08%

4.29%

4.66%

Reference no: EM131617178

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