What is the total market value of debt

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Jiminy's Cricket Farm issued a 30-year, 7.6 percent semiannual bond 5 years ago. The bond currently sells for 84.5 percent of its face value. The book value of this debt issue is $109 million. In addition, the company has a second debt issue, a zero coupon bond with 8 years left to maturity; the book value of this issue is $68 million, and it sells for 62 percent of par. The company’s tax rate is 40 percent. What is the total book value of debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Total book value of debt $ 177000000 What is the total market value of debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Total market value $ 134265000 What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Aftertax cost of debt %

Reference no: EM132048862

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