Shanken Corp. issued a 25-year, 5.9 percent semiannual bond 2 years ago. The bond currently sells...

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Shanken Corp. issued a 25-year, 5.9 percent semiannual bond 2years ago. The bond currently sells for 110 percent of its facevalue. The book value of the debt issue is $45 million. Inaddition, the company has a second debt issue on the market, a zerocoupon bond with 12 years left to maturity; the book value of thisissue is $45 million and the bonds sell for 54 percent of par. Thecompany’s tax rate is 24 percent.
a. What is the company's total book value of debt? (Do not roundintermediate calculations and enter your answer in dollars, notmillions of dollars, e.g., 1,234,567.)
b. What is the company's total market value of debt? (Do notround intermediate calculations and enter your answer in dollars,not millions of dollars, e.g., 1,234,567.)
c. What is your best estimate of the aftertax cost of debt? (Donot round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.)

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1st Issue of Bonds Face Value 45000000 Market Value 110 45000000 Market Value 49500000 Annual Coupon Rate 590 Semiannual Coupon Rate 295 Semiannual Coupon 295 45000000 Semiannual Coupon 1327500 Time to Maturity 23 years Semiannual Period to Maturity 46 Let semiannual YTM be See Answer

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Shanken Corp. issued a 25-year, 5.9 percent semiannual bond 2years ago. The bond currently sells for 110 percent of its facevalue. The book value of the debt issue is $45 million. Inaddition, the company has a second debt issue on the market, a zerocoupon bond with 12 years left to maturity; the book value of thisissue is $45 million and the bonds sell for 54 percent of par. Thecompany’s tax rate is 24 percent.a. What is the company's total book value of debt? (Do not roundintermediate calculations and enter your answer in dollars, notmillions of dollars, e.g., 1,234,567.)b. What is the company's total market value of debt? (Do notround intermediate calculations and enter your answer in dollars,not millions of dollars, e.g., 1,234,567.)c. What is your best estimate of the aftertax cost of debt? (Donot round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.)