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please answer the last question Jiminy's Cricket Farm issued a 30-year, 6.7 percent semiannual bond 6 years ago. The bond currently sells for 107.3 percent
please answer the last question
Jiminy's Cricket Farm issued a 30-year, 6.7 percent semiannual bond 6 years ago. The bond currently sells for 107.3 percent of its face value. The book value of this debt issue is $144 million. In addition, the company has a second debt issue, a zero coupon bond with 10 years left to maturity; the book value of this issue is $83 million, and it sells for 61.7 percent of par. The company's tax rate is 24 percent. What is the hat is the aftertax cost of the zero coupon bond? (Do not round intermediate alculations and enter your answer as a percent rounded to 2 decimal places, e 32.16.) Aftertax cost of debt 3.71% What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Aftertax cost of debt % Step by Step Solution
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