Question: Occam Industrial Machines issued 2 2 5 , 0 0 0 zero coupon bonds five years ago. The bonds originally had 3 0 years to
Occam Industrial Machines issued zero coupon bonds five years ago. The bonds originally had years to maturity with a yield to maturity of percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of percent. The bonds have a par value of $ and semiannual compounding. If the company has a market value of equity of $ million, what weight should it use for debt when calculating the cost of capital?
Note: Do not round intermediate calculations and round your answer to decimal places, eg
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