Calculate the pre-tax cost of the debt quoted as an apr

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Jiminy’s Cricket Farm issued a zero coupon bond with 10 years left to maturity; the book value of this issue is $40 million, and the bonds sell for 52 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  %

Reference no: EM131571055

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