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Jiminys Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 12 percent 3 years ago. The bond currently

Jiminys Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 12 percent 3 years ago. The bond currently sells for 94 percent of its face value. The companys tax rate is 38 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 14 years left to maturity; the book value of this issue is $45 million, and the bonds sell for 53 percent of par. a) What is the companys total book value of debt? b) What is the companys total market value of debt? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) c) What is your best estimate of the aftertax cost of debt? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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