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Jiminy's Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 6 percent 2 years ago. The bond currently

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Jiminy's Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 6 percent 2 years ago. The bond currently sells for 107 percent of its face value. The company's tax rate is 21 percent. The book value of the debt issue is $35 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 $20 million, and the bonds sell for 68 percent of par. What is the company's total book value of debt? $55,000,000$52,250,000$57,750,000$49,500,000 What is the company's total market value of debt? $51,050,000$53,602,500$56,155,000$49,500,000 What is your best estimate of the aftertax cost of debt? 4.08%4.33%3.42%4.28%4.48% Jiminy's Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 6 percent 2 years ago. The bond currently sells for 107 percent of its face value. The company's tax rate is 21 percent. The book value of the debt issue is $35 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 $20 million, and the bonds sell for 68 percent of par. What is the company's total book value of debt? $55,000,000$52,250,000$57,750,000$49,500,000 What is the company's total market value of debt? $51,050,000$53,602,500$56,155,000$49,500,000 What is your best estimate of the aftertax cost of debt? 4.08%4.33%3.42%4.28%4.48%

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