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Business, 30.07.2020 16:01 awkwardness92

Ace Industrial Machines issued 175,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.4 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.5 percent. The bonds have a par value of $2,000. If the company has a $85.8 million market value of equity, what weight should it use for debt when calculating the cost of capital

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Ace Industrial Machines issued 175,000 zero coupon bonds 8 years ago. The bonds originally had 30 ye...
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