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Ace Industrial Machines issued 146,000 zero coupon bonds seven years ago. The bonds have a par value of $1,000 and originally had 30 years to
Ace Industrial Machines issued 146,000 zero coupon bonds seven years ago. The bonds have a par value of $1,000 and originally had 30 years to maturity with a yield to maturity of 7.1 percent. Interest rates have recently increased, and the bonds now have a yield to maturity of 8.2 percent. What is the dollar price of the bonds? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Bond price What is the market value of the company's debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Market value If the company has a $46.1 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., 1616.) Weight of debt
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