The only bond issue that Roberts Co. has outstanding are zero coupon bonds maturing in 15 years. The yield to maturity of these bonds is 12%. Each zero has a face value of $1,000 and there are 2,000 of the bonds outstanding. If the market value of Roberts equity is $1,200,000, what capital structure weight for debt would you use in calculating the WACC for Roberts Co.?

Multiple Choice

23.34%

15.55%

10.84%

18.98%

25.65%