In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from historical book values to market values. YRKF Corporation's balance sheet (book values) as of today is as follows:

Long-term debt (bonds, at par) $60,000,000

Preferred stock 3,000,000

Common stock ($10 par) 10,000,000

Retained earnings 5,000,000

Total debt and equity $78,000,000

The bonds have a 7.3% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 20 years from today. The yield to maturity is 9%, so the bonds now sell below par. What is the current market value of the firm's debt? (Hint: first calculate PV of bonds).

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