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Jiminy's Cricket Farm issued a bond with 1 5 years to maturity and a semiannual coupon rate of 4 percent 2 years ago. The bond

Jiminy's Cricket Farm issued a bond with 15 years to maturity and a semiannual coupon
rate of 4 percent 2 years ago. The bond currently sells for 91 percent of its face value.
The company's tax rate is 21 percent. The book value of the debt issue is $30 million. 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 $20 million, and the bonds sell for
73 percent of par.
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