Find the weighted average cost of debt for a company with the following two bonds outstanding:
Bond A Bond B
Face Value 1,000 1,000
Number of bonds outstanding 2,500 6000
Coupon rate 9% 6%
Compounding Annual Semiannual
Years to Maturity 13 6
Current price 104 99
Cost of debt (YTM)—Bond A ___________________
Cost of debt (YTM)—Bond B ___________________
Market Value % of Bond A _________________
Market Value % of Bond B ___________________
Weighted Average cost of debt _____________________