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Jiminy's Cricket Farm issued a 3 0 - year, 4 . 5 percent semiannual bond three years ago. The bond currently sells for 1 0
Jiminy's Cricket Farm issued a year, percent semiannual bond three years ago. The bond currently sells for percent of its
face value. The book value of the debt issue is $ million. In addition, the company has a second debt issue, a zero coupon bond
with eight years left to maturity; the book value of this issue is $ million, and it sells for percent of par. The company's tax rate is
percent.
a What is the total book value of debt?
Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, eg
b What is the total market value of debt?
Note: Do not round intermediate calculations and 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
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