A company zero coupon bond matures in 22years and has a


Question: A company zero coupon bond matures in 22years and has a yeild to maturiaty of 12.01%. Each zero coupon bond has a face vaule of $1000 and there are 2000 of the bonds outstanding. If the market value of the companies equity is $1,000,000, what is the capital structure weight for debt would you use in calculating the WACC, assuming the only debt consists of zero coupon bonds?

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Finance Basics: A company zero coupon bond matures in 22years and has a
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