Recent Posts • Latest Topics • Unanswered Questions

A firm's cost of debt often differs from the yield reported on its bonds because

mmcalzad

wrote...

Go to Answer

Posts: 104

Rep:

3 years ago

A firm's cost of debt often differs from the yield reported on its bonds because

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.

Textbook

Corporate Finance Online

Edition: 2^nd

Authors: Eakins, McNally

Read 58 times

1 Reply

Report

Replies

Answer verified by a subject expert

fjkldsjljsf

wrote...

Posts: 75

Rep:

3 years ago

More solutions for this book are available here

Report

Related Topics

mmcalzad Author

wrote...

3 years ago

this is exactly what I needed

Jadakiss

wrote...

Yesterday

Thank you, thank you, thank you!

DAGINC

wrote...

2 hours ago

Just got PERFECT on my quiz

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

870 People Browsing

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Related Images

311

181

354

Your Opinion

Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?

Bonobos, Chimpanzees, and the 98% DNA Link

The Toxic Skin and Fungi Defense

It's sore throat season, why does my mucus have red spots?

Courses by Biology Forums

Strange Ingredients Lurking in Doritos Chips

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.