Jiminys Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 10 percent 4 years ago. The bond currently sells for 97 percent of its face value. The companys tax rate is 38 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 11 years left to maturity; the book value of this issue is $45 million, and the bonds sell for 53 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?