Help Save & Exit Submit ny work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Pearce's Cricket Farm issued a 10-year, 6% semiannual bond 2 years ago. The bond currently sells for 95% of its face value. The company's tax rate is 40%. Suppose the book value of the debt issue is $55 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 15 years left to maturity; the book value of this issue is $30 million and the bonds sell for 55% of par. Assume the par value of the bond is $1,000. What is the company's total book value of debt? (Enter the answer in dollars. Omit $ sign in your response.) Total book value $ 85000000 What is the company's total market value of debt? (Enter the answer in dollars. Omit $ sign in your responses Total market value $ 68750000 What is your best estimate of the after-tax cost of debt? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of debt 5.83 * % < Prev 2 of 9 Next > ENG