Suspect Corp. issued a bond with a maturity of 25 years and a semiannual coupon rate of 10 percent 4 years ago. The bond currently sells for 97 percent of its face value. The book value of the debt issue is $45 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 11 years left to maturity; the book value of this issue is $45 million and the bonds sell for 53 percent of par. The companys tax rate is 38 percent. What is the companys total book value of debt? 45+45=90 What is the companys total market value of debt? 45*.97+45*.53=43.65+23.85=67.5

What is your best estimate of the after-tax cost of debt? (please answer this with a step by step explanation, if you use a financial calculator explain what you are using on the calculator EX: N, I/YR, etc)