Black Water Corp. just issued zero-coupon bonds

Black Water Corp. just issued zero-coupon bonds

Question 131 / 1 point

Black Water Corp. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 22 years and a yield to maturity of 14.62 percent, compounded annually. What is the current price of the bond?

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Round the answer to two decimal places.

Cost of debt A/T, B/T

 

Question 141 / 1 point

Black Hill Inc. sells $100 million worth of 13-year to maturity 11.39% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $973 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

Round the answer to two decimal places in percentage form. (Write the percentage sign in the “units” box)

You should use Excel or financial calculator.

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