Jiminyrsquos cricket farm issued a zero coupon bond with 14, Ask an Expert

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Jiminy’s Cricket Farm issued a zero coupon bond with 14 years left to maturity; the book value of this issue is $30 million, and the bonds sell for 55 percent of par.

A. 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.)

A. Yield to Maturity %

B. 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.)

B. Yield to Maturity %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92346871

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