Probability of default-Year 5... calculate the yield to maturity, the cost of debt, and the expected default loss for this debt issue. Debt Cost of Capital Estimated Using the CAPM The any ha debt on their books of 2005 with a credit rating of PMJ B. The yield to maturity of AA rated debt at that time was approxi P9.4 which we assume is equal to its cost of debt. Use the data in Exhibit 9.11 to estimate the debt cost ofa for the PMJ Company at the end of 2005. Assume the market risk premium is 8%. P9.5 Using Financial Ratios to Estimate a credit Rntind, Probability of default-Year 5... calculate the yield to maturity, the cost of debt, and the expected default loss for this debt issue. Debt Cost of Capital Estimated Using the CAPM The any ha debt on their books of 2005 with a credit rating of PMJ B. The yield to maturity of AA rated debt at that time was approxi P9.4 which we assume is equal to its cost of debt. Use the data in Exhibit 9.11 to estimate the debt cost ofa for the PMJ Company at the end of 2005. Assume the market risk premium is 8%. P9.5 Using Financial Ratios to Estimate a credit Rntind