Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

تمرين 1

Subsidiary Company S has $1,000,000 of bonds outstanding. The bonds have 10 years to maturity and pay interest at 8% annually. The parent has an average annual borrowing cost of 6% and wishes to reduce the interest cost of the consolidated company. What methods could be used to maintain the subsidiary as the debtor?