Cost of Debt Use YTM Bond 1 Bond 2 Bond 3 Duration 30 22 5 Face Value 1000 2000 1000 Coupon Rate 0.08 0.05 0.04 Number of Coupons per Year 1 1 1 Coupon Payment 80 100 40 Market Value -1045 -1970 -876 YTM 7.6% 5.1% 7.0% This is the cost for each Amount of Each 150000 Value 156750000 400000 788000000 250000 219000000 1163750000 Wts 13% 68% 19% 100% Wtd Avg 1.0% 3.5% 1.3% 5.8% This is the cost of Debt Wtd