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For the firm in Problem 7, suppose the book value of the debt issue is $85 million. In addition, the company has a second debt

For the firm in Problem 7, suppose the book value of the debt issue is $85 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 $35 million, and it sells for 59% of par. What is the company's total book value of debt? The total market value? What is your best estimate of the aftertax cost of debt now?

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