Liu Industrial Machines issued 137,000 zero coupon bonds six years ago. The bonds originally had 30 years to maturity with a yield to maturity of 6.7 percent. Interest rates have recently increased, and the bonds now have a yield to maturity of 8.3 percent. If the company has a $45.2 million market value of equity, what weight should it use for debt when calculating the cost of capital?
(Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
What is the Weight of debt?