9.

Bennington Industrial Machines issued 144,000 zero coupon bonds five years ago. The bonds originally had 30 years to maturity with a yield to maturity of 7.4 percent. Interest rates have recently increased, and the bonds now have a yield to maturity of 8.5 percent.

Required:

What is the price of the bonds?(Do not round intermediate calculations. Round your answer to 2 decimalplaces (e.g., 32.16).)

Bond price

$

What is the market value of the company's debt?(Do not round intermediate calculations. Round your answer to 2 decimalplaces (e.g., 32.16).Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).)

Market value

$

If the company has a $45.9 million market value of equity, what weight should it use for debt when calculating the cost of capital?(Do not round intermediate calculations. Round your answer to 4 decimalplaces (e.g., 32.1616).)

Weight of debt