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Great Nevada Inc. has 3 bond issues outstanding: Book value of issue Coupon rate YTM Price 20,000,000 5% 4.9% 100.89 5,000,000 7% 3.7% 122.5 27,000,000

Great Nevada Inc. has 3 bond issues outstanding:

Book value of issue Coupon rate YTM Price
20,000,000 5% 4.9% 100.89
5,000,000 7% 3.7% 122.5
27,000,000 6.5% 7% 94.7

1. What is the (pre-tax) cost of debt based only on the first bond?

2. What is the market value of the first bond issue?

3. What is the combined market value of all 3 issues?

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