The cost of debt is affected by the current yield-to-maturity of the firm's bonds.

Name: The cost of debt is affected by the current yield-to-maturity of the firm's bonds.
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The cost of debt is influenced by the current yield-to-maturity (YTM) of a firm's bonds, as the YTM reflects the market's required rate of return for holding the bonds, which in turn affects the interest rate the firm must pay on its new and existing debt.

The Cost of Debt Is Affected by the Current Yield-To-Maturity