Question: Jiminy s Cricket Farm issued a 2 0 - year, 7 percent semiannual coupon bond 5 years ago. The bond currently sells for 9 4
Jiminys Cricket Farm issued a year, percent semiannual coupon bond years ago. The bond currently sells for percent of its face value. The companys tax rate is percent. 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 the bonds sell for percent of par.
a
What is the companys total book value of debt? Enter your answer in dollars, not millions of dollars, eg
b What is the companys total market value of debt? Enter your answer in dollars, not millions of dollars, eg
c What is the aftertax cost of debt? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
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