Jiminys Cricket Farm issued a bond with 18 years to maturity and a semiannual coupon rate of 8 percent 3 years ago. The bond currently sells for 92 percent of its face value. The companys tax rate is 40 percent. The book value of the debt issue is $45 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 12 years left to maturity; the book value of this issue is $35 million, and the bonds sell for 51 percent of par.

What is the companys total book value of debt?

What is the companys total market value of debt?

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