Roberts Co

Roberts Co.'s zero coupon bonds mature in 22 years and have a yield to maturity of 12.01%. 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 $1,000,000, what capital structure weight for debt would you use in calculating the WACC, assuming Roberts' only debt consists of the zeros?

A) 11.9%
B) 14.2%
C) 15.8%
D) 18.9%
E) 66.7%