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You are trying to find the cost of debt for Maggie s Farm, an organic food company. Maggie s Farm has a bond rating of

You are trying to find the cost of debt for Maggies Farm, an organic food company. Maggies Farm has a bond rating of AA. You know that historically companies that have a AA rating typically have a bond yield that is 0.50% over the current 10-year treasury rate. The current 10 year treasury rate is 1.6%. You know that Maggies Farm has a face value of debt of $1,000,000,000. The average maturity of their debt is 10 years and the average coupon rate of their debt is 3.5%.a. Based on this information, what should be the cost of debt for Maggies Farms?b. What is the market value of Maggies Farm debt? Show your inputs.

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