Jiminy's Cricket Farm issued a 30-year, 8 percent semi-annual bond 6 years ago. The bond currently sells for 86 percent of its face value. The book value of the debt issue is $16 million. The company's tax rate is 35 percent.

In addition, the company has a second debt issue on the market, a zero coupon bond with 6 years left to maturity; the book value of this issue is $83 million and the bonds sell for 76 percent of par.