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Author Question: A firm's cost of debt often differs from the yield reported on its bonds because (Read 57 times)

serike

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on: Apr 25, 2021
A firm's cost of debt often differs from the yield reported on its bonds because
◦ the firm's cost of debt is unknown when the bonds are first sold.
◦ the underwriting costs for new bond issues are not tax deductible, raising the cost of debt relative to bond yields.
◦ the cost of debt changes infrequently since bond rating agencies do not change their recommendations often.
◦ the interest paid on corporate bonds is tax deductible.
◦ speculators can drive the cost of debt down so that bond yields exceed it.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by serike on Apr 25, 2021

perkiness

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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serike

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

ktidd

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Reply 3 on: Yesterday
Gracias!

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