Problem $12-18$ Calculating Capital Structure Weights $[$LO $3]$

Occam Industrial Machines issued $147,000$ zero coupon bonds four years ago. The bonds have a par value of $$1,000$ and originally

had $30$ years to maturity with a yield to maturity of $7\mathrm{.}2$ percent. Interest rates have recently increased, and the bonds now have a yield

to maturity of $8\mathrm{.}3$ percent. Assume semiannual compounding for the bonds.

What is the dollar price of the bonds?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Bond price

What is the market value of the company's debt?

Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal

places, e$.$g$.,1,234,567\mathrm{.}89.$

Market value

If the company has a $$46\mathrm{.}2$ million market value of equity, what weight should it use for debt when calculating the cost of capital?

Note: Do not round intermediate calculations and round your answer to $4$ decimal places, e$.$g$.,\mathrm{.}1616.$