If a firms bonds are currently yeilding 8 in the, Ask an Expert

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If a firm's bonds are currently yeilding 8% in the marketplace, why would the firm's cost of debt be lower?

a) interest rates have changed

b) additional debt can be issued more cheaply than the original debt

c) there should be no difference;cost of of debt is the same as the bounds market yeild

d) intrest is tax-deductible

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92167104

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