(Answered) Book value of the debt issue

Finance

In the following question, please explain how the figure in bold was calculated.

Jiminy's Cricket Farm issued a 30-year, 8 percent semi-annual bond 7 years ago. The bond currently sells for 84 percent of its face value. The book value of the debt issue is $19 million. The company's tax rate is 34 percent.

Before Tax Cost of Debt = rate(nper,pmt,pv,fv)*2

Before Tax Cost of Debt = rate(46,40,-840,1000)*2

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