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Jiminy's Cricket Farm issued a 30-year, 7 percent coupon bond 5 years ago. The bond makes semi-annual coupon payments and sells for 95 percent of

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Jiminy's Cricket Farm issued a 30-year, 7 percent coupon bond 5 years ago. The bond makes semi-annual coupon payments and sells for 95 percent of its face value. The face value of the debt issue is $17 million and the yleld to maturity is 7.442%. Note: YTM for coupon bonds is quoted as an APR with semi-annual compounding. In addition, the company has a second debt issue on the market, a zero coupon bond with 5 years left to maturity, the face value of this issue is $78 million and the bonds sell for 80 percent of face value. Note: Zero-coupon bonds only make one payment: face value which is paid at maturity. Required: (a) calculations.) (b)What is the company's total market value of debt? (Do not round your Intermediate calculations.) (c) What is the pre-tax cost of debt for the zero coupon bond? Report this as an APR with semi-annual compounding. (Enter your answer as a percent, rounding to three decimals.) % (d) The company's tax rate is 33 percent. What is the company's after-tax cost of debt? Report this as an APR with semi-annual compounding. (Do not round your Intermediate calculations.)

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