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Jiminy's Cricket Farm issued a 2 5 - year, 6 percent semiannual coupon bond 2 years ago. The bond currently sells for 1 0 7
Jiminy's Cricket Farm issued a year, percent semiannual coupon bond years ago. The bond currently sells for percent of its face value. The company's tax rate is percent. The book value of the debt issue is $ million. In addition, the company has a second debt issue, a zero coupon bond with years left to maturity; the book value of this issue is $ million, and the bonds sell for percent of par.
a What is the company's total book value of debt?
Note: Enter your answer in dollars, not millions of dollars, eg
b What is the company's total market value of debt?
Note: Enter your answer in dollars, not millions of dollars, eg
c What is the aftertax cost of debt?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
tablea Total book value,,b Total market value,,c Cost of debt,,
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