Jiminy's Cricket Farm issued a 30-year, 7 percent semi-annual bond 7 years ago. The bond currently sells for 85 percent of its face value. The book value of the debt issue is $25 million. The company's tax rate is 33 percent. In addition, the company has a second debt issue on the market, a zero coupon bond with 7 years left to maturity; the book value of this issue is $81 million and the bonds sell for 73 percent of par.

What is your best estimate of the aftertax cost of debt?