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Peyton's Colt Farm issued a 30-year, 7.2 percent semiannual bond 9 years ago. The bond currently sells for 85.5 percent of its face value. The

Peyton's Colt Farm issued a 30-year, 7.2 percent semiannual bond 9 years ago. The bond currently sells for 85.5 percent of its face value. The company's tax rate is 30 percent. The book value of the debt issue is $107 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 $66 million, and it sells for 61.0 percent of par.

What is the total book value of debt?

What is the total market value of debt?

What is the aftertax cost of debt? (%) (2 decimal places)

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