Jiminyrsquos cricket farm issued a zero coupon bond with 11, Ask an Expert

Finance

Jiminy’s Cricket Farm issued 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.

Calculate the pre-tax cost of the debt (the yield to maturity) quoted as an EAR. (Don't round intermediate steps. Enter answer as a percent rounded to two decimals.)

Yield to Maturity____%

What is the pre-tax cost of the debt (yield to maturity) quoted as an APR with semi-annual compounding? (Don't round intermediate steps. Enter answer as a percent rounded to two decimals.)

Yield to Maturity____ %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92414909

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