Jiminys Cricket Farm issued a bond with 15 years to maturity and a semiannual coupon rate of 6 percent 4 years ago. The bond currently sells for 93 percent of its face value. The companys tax rate is 23 percent. The book value of the debt issue is $40 million. In addition, the company has a second debt issue on the market, a zero-coupon bond with 9 years left to maturity; the book value of this issue is $25 million, and the bonds sell for 67 percent of par.

What is the company`s total book value of debt?

$65,000,000, $61,750,000, $68,250,000, $ 58,500,000

What is the company`s total market value of debt?

$53,950,000, $ 56,647,500, $ 59,345,000, $58,500,000

What is your best estimate of the after-tax cost of debt?

4.75%, 4.50%,3.46%, 4.99%, 5.22%