Nasher Corp issued $60,000,000 of senior issue 30 year bonds three years ago. They were semi annual 8% bonds. They are currently trading at $930. Nasher is planning on issuing a new ten year zero coupon bond priced at 57 percent of par value. They will be issuing $35,000,000 of the new bonds. There is a disagreement as to what they should use as their cost of debt for the rest of the year. Some argue that the existing 30 year bond is so well received that it's cost should be used. Others argue that since the new bond will reflect their current ongoing costs of debt that it's cost should be used. You need to settle this before it becomes an argument. Nashers Tax rate is 21%. How would go about solving this dilemma and what is the appropriate cost of debt they should use?