### Company has a second debt issue on the market

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Issued a bond with a maturity of 25 years and a semiannual coupon rate of 6 percent 2 years ago. The bond currently sells for 92 percent of its face value. The book value of the debt issue is \$45 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 12 years left to maturity; the book value of this issue is \$45 million and the bonds sell for 53 percent of par. The company’s tax rate is 40 percent.

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