Question: Calculating Capital Structure Weights. Liu Industrial Machines issued 175,000 zero coupon bonds four years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.1 percent. Interest rates have recently decreased, and the bonds now have a yield to maturity of 5.9 percent. If the company has a $68 million market value of equity, what weight should it use for debt when calculating the cost of capital?