What is the total book value of debt

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Jim's Mobile issued a 30-year, 7 percent semiannual bond 9 years ago. The bond currently sells for 88 percent of its face value. The book value of this debt issue is $102 million. In addition, the company has a second debt issue, a zero coupon bond with 12 years left to maturity; the book value of this issue is $61 million, and it sells for 58.5 percent of par. The company's tax rate is 30 percent.

a) What is the total book value of debt

b) What is the total market value of debt?

c) What is the aftertax cost of debt?

Reference no: EM132007177

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