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Mathematics, 12.12.2021 22:50 amanda7771

Jimmy’s cricket farm issued a bond with 20 years to maturity and a semiannual coupon rate ofm4 percent 6 years ago. The bond currently sell for 95 percent of its face value. The company’s tax rate isc25 percent. The book value of the debt issue is $50 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 7 years left to maturity, also compounded semiannually, the book value of this issue is $35 million, and the bonds sell for 74 percent of par.

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