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Jiminy’s Cricket Farm issued a 20-year, 5 percent semiannual coupon bond 2 years ago. The bond...

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Finance

Jiminy’s Cricket Farm issued a 20-year, 5 percent semiannualcoupon bond 2 years ago. The bond currently sells for 96 percent ofits face value. The company’s tax rate is 21 percent. The bookvalue of the debt issue is $55 million. In addition, the companyhas a second debt issue, a zero coupon bond with 8 years left tomaturity; the book value of this issue is $30 million, and thebonds sell for 67 percent of par.

What is the company’s total book value of debt?

What is the company’s total market value of debt?

What is the aftertax cost of debt?

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