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Suspect Corp. issued a bond with a maturity of 25 years and a semiannual coupon rate of 12 percent 3 years ago. The bond currently
Suspect Corp. issued a bond with a maturity of 25 years and a semiannual coupon rate of 12 percent 3 years ago. The bond currently sells for 94 percent of its face value. The book value of the debt issue is $40 million. In addition, the company has a second debt issue E on the market, a zero coupon bond with 14 years left to maturity; the book value of this issue is $45 million and the bonds sell for 53 E percent of par. The company's tax rate is 38 percent. E What is the company's total book value of debt? (Do not round intermediate calculations. Enter your answer in dollars, not millions E of dollars, e.g., 1,234,567.) Total book value $ 85,000,0 What is the company's total market value of debt? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Total market value $ 61,450,00 What is your best estimate of the aftertax cost of debt? (Do not round intermediate calculations. Enter your answer as a percent E rounded to 2 decimal places, e.g., 32.16.) Cost of debt
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