18. Calculating Capital Structure Weights Ace Industrial Machines issued”195,000 zero coupon bonds four years ago. The bonds originally had 30 years to maturity with a yield to maturity of 5.2 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of””4.9 percent. If the company has a $73 million market value of equit.
what”weight should it use for debt when calculating the cost of capital?
