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Suppose the book value of the debt issue is $ 1 4 5 million. In addition, the company has a second debt issue, a zero
Suppose the book value of the debt issue is $ million. In addition, the company has a second debt
issue, a zero coupon bond with years left to maturity; the book value of this
issue is $ million, and it sells for percent of par. What is the total book
value of debt? The total market value? What is the aftertax cost of debt now?
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