Find the weighted average cost of debt for a company with


Find the weighted average cost of debt for a company with the following two bonds outstanding:

Bond A                         Bond B

Face Value                                                        1,000                            1,000

Number of bonds outstanding                           3,000                            6000

Coupon rate                                                      8%                               6%

Compounding                                                   Annual                         Semiannual

Years to Maturity                                              14                                5

Current price                                                    103                               97

Cost of debt (YTM)—Bond A ___________________

Cost of debt (YTM)—Bond B ___________________

Market Value % of Bond A _________________

Market Value % of Bond B ___________________

Weighted Average cost of debt _____________________

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Financial Management: Find the weighted average cost of debt for a company with
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