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Jiminy's Cricket Farm issued a 3 0 - year, 5 . 7 percent semiannual bond 3 years ago. The bond currently sells for 1 1
Jiminy's Cricket Farm issued a year, percent semiannual bond 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 on the market, 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. The company's tax rate is percent.
a What is the company's total book value of debt? Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, eg
b What is the company's total market value of debt? Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, eg
c What is your best estimate of the aftertax cost of debt? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
Answer is complete but not entirely correct.
tablea Total book value,
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