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A companys zero coupon bond issue matures in 16 years and has a yield to maturity of 10.60%. Each zero has a face value of
A companys zero coupon bond issue matures in 16 years and has a yield to maturity of 10.60%. Each zero has a face value of $1,000 and there are 4,000 of the bonds outstanding. If the market values the equity at $1,800,000, what capital structure weight for debt would you use in calculating the WACC, assuming the firms only debt consists of the zeros?
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