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Business, 05.05.2020 08:05 valenciafaithtorres

Ace Industrial Machines issued 120,000 zero coupon bonds 8 years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.1 percent. The bonds have a par value of $2,000. If the company has a $77 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 120,000 zero coupon bonds 8 years ago. The bonds originally had 30 ye...
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