Jiminy's Cricket Farm issued a 30-year, 8 percent semi-annual bond 5 years ago. The bond currently sells for 84 percent of its face value. The book value of the debt issue is $17 million. The company's tax rate is 32 percent.

In addition, the company has a second debt issue on the market, a zero coupon bond with 5 years left to maturity; the book value of this issue is $78 million and the bonds sell for 78 percent of par.

Required:

(a)	What is the company's total book value of debt?
	(Click to select) 75,120,000 74,100,000 95,000,000 115,900,000 115,120,000

(b)	What is the company's total market value of debt?
	(Click to select) 78,876,000 95,000,000 78,124,800 75,120,000 71,364,000

(c)

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

	(Click to select) 4.61% 3.82% 4.03% 2.96% 4.39%