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____ %