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Jiminy's Cricket Farm issued a 30-year, 5.9 percent semiannual bond 7 years ago. The bond currently sells for 106.6 percent of its face value.
Jiminy's Cricket Farm issued a 30-year, 5.9 percent semiannual bond 7 years ago. The bond currently sells for 106.6 percent of its face value. The book value of this debt issue is $137 million. In addition, the company has a second debt issue, a zero coupon bond with 11 years left to maturity; the book value of this issue is $69 million, and it sells for 59.9 percent of par. The company's tax rate is 22 percent. What is the total book value of debt? Note: 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 $ 206,000,000 What is the total market value of debt? Note: 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 $ 145,905,000 What is the aftertax cost of the 5.9 percent coupon bond? Note: 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 %
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