Question: Question 2 1 pts Zero Motorcycles takes out a $10MM loan, agreeing to pay 0.6MM interest at EOY 1 and at EOY 2, when it

Question 2 1 pts Zero Motorcycles takes out a $10MM loan,

Question 2 1 pts Zero Motorcycles takes out a $10MM loan, agreeing to pay 0.6MM interest at EOY 1 and at EOY 2, when it will repay the principal. The bank also charges Zero a fee of 5%"points" for this loan, payable at EOYO (at loan signing). 5% "points" mean 5% of the principal amount of the loan. What is zero's pre-tax cost of debt capital (rp) for this loan? Round your answer to three decimal places. Do not represent your answer as a percent. IE: write 0.072 not 7.2%

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