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BZ Inc's weighted average cost of capital is 6%. The company has a market capitalization of $858.2 million and carries debt of $367.2 million.BZ's beta
BZ Inc's weighted average cost of capital is 6%. The company has a market capitalization of $858.2 million and carries debt of $367.2 million.BZ's beta is 1.1 and the tax rate it faces is 26%. The 10-year US Treasury Bond has a yield of 1.7% and the market risk premium is estimated to be 5.4%. What is the yield to maturity on BZ's outstanding debt? Report your answer as a decimal rounded to four decimal places.
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