Q 13.10: A firm has three outstanding debt issues, with the following characteristics: At issue Current % of debt % of debt cost cost using par using current rate rate value market value Issue 1 6% 6.50% 25% 28% Issue 2 5% 5.50% 40% 42% Issue 3 7% 7.50% 35% 30% The correct weighted average cost of debt would be found as