Jiminys cricket farm issued a bond with 15 years to, Ask an Expert

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Jiminy's Cricket Farm issued a bond with 15 years to maturity and a semiannual coupon rate of 10 percent 4 years ago. The bond currently sells for 91 percent of its face value.

The company's tax rate is 38 percent. The book value of the debt issue is $60 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 11 years left to maturity; the book value of this issue is $35 million, and the bonds sell for 51 percent of par.

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

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92798910

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