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Question 6 Not yet answered Jiminy's Cricket Farm issued a 20-year, 7 percent semiannual bond four years ago. The band currently sells for 98 percent

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Question 6 Not yet answered Jiminy's Cricket Farm issued a 20-year, 7 percent semiannual bond four years ago. The band currently sells for 98 percent of its face value. The company's tax rate is 25 percent. For the same firm, suppose the book value of the debt issue is $75 million. In addition, the company has a second debt issue on the market, a zero coupon bond with eight years left to maturity: the book value of this issue is $30 million, and the bonds sell for 80 percent of par. What is your best estimate of the aftertax cost of debt now? Points out of 1.00 Flag question Select one: O A 1.404% O B. 2.81% C. 2.11% O D. 4.60% O E. 5.41%

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