Problem 14-8 Calculating Cost of Debt [LO2) Jiminy's Cricket Farm issued a bond with 10 years to maturity and a semiannual coupon rate of 6 percent 2 years ago

Problem 14-8 Calculating Cost of Debt [LO2) Jiminy's Cricket Farm issued a bond with 10 years to maturity and a semiannual coupon rate of 6 percent 2 years ago. The bond currently sells for 95 percent of its face value. The company's tax rate is 40 percent The book value of the debt issue is $55 million. In addition, the company has a second debtinue on the market, a zero coupon bond with 15 years left to maturity, the book value of this we in 530 milion, and the bonds sell for 55 percent of par. What is the company's total book value of debt? (Enter your answer in dollars, not millions of dollars, 0.g. 1,234,567.) Total book value What is the company's total market value of debt? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) Total market value bent ortimate of the aftertax cost of debt? (Do not round Intermediate calculations.