1)

Fresh Fruit, Inc has a $1,000 par value bond that is currently selling for $1,459. It has an annual coupon rate of 16.33 percent, paid semiannually, and has 18-years remaining unit maturity. What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity?

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.

2)

Black Hill Inc. sells $100 million worth of 23-year to maturity 14.94% annual coupon bonds. The net proceeds (proceeds after flotation cost) are $977 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

Round the answer to two decimal places form. (write the percentage sign in the "units" box)

You should use excel or financial calculator.