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Jiminy's Cricket Farm issued a 3 0 - year, 6 . 6 percent semiannual bond 8 years ago. The bond currently sells for 1 0

Jiminy's Cricket Farm issued a 30-year, 6.6 percent semiannual bond 8 years ago. The
bond currently sells for 108.6 percent of its face value. The book value of this debt issue
is $154 million. In addition, the company has a second debt issue, a zero coupon bond
with 12 years left to maturity; the book value of this issue is $103 million, and it sells for
62.7 percent of par. The company's tax rate is 24 percent.
What is the total book value of debt? (Do not round intermediate calculations and
enter your answer in dollars, not millions of dollars, rounded to the nearest whole
number, e.g.,1,234,567.)
Total book value of debt
What is the total market value of debt? (Do not round intermediate calculations and
enter your answer in dollars, not millions of dollars, rounded to the nearest whole
number, e.g.,1,234,567.)
Total market value
What is the aftertax cost of the 6.6 percent coupon bond? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Aftertax cost of debt
%
What is the aftertax cost of the zero coupon bond? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Aftertax cost of debt
%
What is the aftertax cost of debt? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g.,32.16.)
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