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Author Question: The size of a loan and its issuance costs (as a percentage of the amount borrowed) are ________. ... (Read 41 times)

kodithompson

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on: Jul 11, 2018
The size of a loan and its issuance costs (as a percentage of the amount borrowed) are ________.
 
  A) not related
  B) inversely related
  C) independent
  D) perfectly positively correlated

Question 2

The approximate before-tax cost of debt for a 10-year, 8 percent, 1,000 par value bond selling at 1,150 is ________.
 
  A) 5.97 percent
  B) 8.33 percent
  C) 8.82 percent
  D) 9 percent


elizabethrperez

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Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

A


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