Shanken Corp. issued a 30-year, 6.2 percent semiannual bond 7 years ago. The bond currently sells for 108 percent of its face value. The company's tax rate is 35 percent. The book value of the debt issue is $70 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 12 years left to maturity; the book value of this issue is $100 million and the bonds sell for 61 percent of par.

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 %