DeVille Industrial Machines issued 135,000 zero coupon bonds four years ago. The bonds originally had 30 years

Question:

DeVille Industrial Machines issued 135,000 zero coupon bonds four years ago. The bonds originally had 30 years to maturity with a 6.5 percent yield to maturity. Interest rates have recently increased, and the bonds now have an 8.1 percent yield to maturity. If the company has a $45 million market value of equity, what weight should it use for debt when calculating the cost of capital?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...