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Just question 7. Please show the steps. Thanks! Calculating Cost of Debt Jiminy's Cricket Farm issued a 30-year, 6.3 percent semiannual bond eight years ago.

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Just question 7. Please show the steps. Thanks!

Calculating Cost of Debt Jiminy's Cricket Farm issued a 30-year, 6.3 percent semiannual bond eight years ago. The bond currently sells for 110 percent of its face value. The company's tax rate is 22 percent. a. What is the pretax cost of debt? b. What is the aftertax cost of debt? c. Which is more relevant, the pretax or the aftertax cost of debt? Why? Calculating Cost of Debt For the firm in Problem 6, suppose the book value of the debt issue is $135 million. In addition, the company has a second debt issue, a zero coupon bond with 12 years left to maturity; the book value of this issue is $65 million, and it sells for 64.3 percent of par. What is the total book value of debt? The total market value? What is the aftertax cost of debt now

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