The discount rate for financial lease cash flows should be:
A) lower than the interest on a secured bond issued by the lessee.
B) higher than the interest on a secured bond issued by the lessee.
C) approximately the same as the interest on a secured bond issued by the lessee.
D) lower than the interest on an unsecured bond issued by the lessee.
E) higher than the interest on an unsecured bond issued by the lessee.
Correct Answer:
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