Question

Peyton’s Colt Farm issued a 30-year, 7.2 percent semiannual bond 6 years ago. The bond currently sells for 87.5 percent of its face value. The company’s tax rate is 38 percent. The book value of the debt issue is $103 million. In addition, the company has a second debt issue, a zero coupon bond with 9 years left to maturity; the book value of this issue is $62 million, and it sells for 59.0 percent of par.
What is the total book value of debt?
What is the total market value of debt?