$19.$ Capital Structure Weights:

Supposed that

$-$ DeVille Co$,$ issued $135,000$ zero coupon bonds $($Face value $=$ $$1,000)$ four years ago.

$-$ The bonds originally had $30$ years to maturity with a $6\mathrm{.}5\%$ yield to maturity.

$-$ Interest rate have recently increased, and the bonds now have an $8\mathrm{.}1\%$ yield to maturity

If the company as a $$45$ million market value of equity, what weight should it use for debt when calculating the cost of capital?

Answer: