McDonalds issued a 25-year, 5 % semiannual coupon bond 6 years ago. Bond currently sells for 106 % of its face value. McDonalds tax rate is 25%. Book value of the debt issue is $45 million. McDonalds has a second debt issue, a zero coupon bond with 8 years left to maturity; the book value of this issue is $35 million, and the bonds sell for 73 % of par.

What is total book value?

What is total market value?

What is the cost of debt?