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Jiminy's Cricket Farm issued a 30-year, 7.2 percent semiannual bond 5 years ago. The bond currently sells for 89.5 percent of its face value. The

Jiminy's Cricket Farm issued a 30-year, 7.2 percent semiannual bond 5 years ago. The bond currently sells for 89.5 percent of its face value. The book value of this debt issue is $99 million. In addition, the company has a second debt issue, a zero coupon bond with 8 years left to maturity; the book value of this issue is $69 million, and it sells for 57 percent of par. The companys tax rate is 40 percent. What is the aftertax cost of debt?

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