Jiminys Cricket Farm issued a 15-year, 6 percent semiannual bond 2 years ago. The bond currently sells for 95 percent of its face value. The companys tax rate is 40 percent.

Suppose the book value of the debt issue is $60 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 15 years left to maturity; the book value of this issue is $35 million, and the bonds sell for 51 percent of par.

What is the companys total book value of debt?

What is the companys total market value of debt?

What is your best estimate of the aftertax cost of debt?