Shanken Corp. issued a 20-year, 10 percent semiannual bond 2 years ago. The bond currently sells for 93 percent of its face value. The book value of the debt issue is $50 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 13 years left to maturity; the book value of this issue is $40 million and the bonds sell for 52 percent of par. The company's tax rate is 35 percent.

What is the company's total book value of debt?

Total book value$

What is the company's total market value of debt?

Total market value$

What is your best estimate of the aftertax cost of debt?

Cost of debt