We Can Estimate a Firm's Cost of Debt by _____________________

We can estimate a firm's cost of debt by _____________________.

A) Observing the yield to maturity on the firm's outstanding bonds.
B) Observing the coupon rate on the firm's outstanding bonds.
C) Observing the yield to maturity on newly-issued debt of other firms without regard to risk.
D) Observing the risk-free rate and adding a risk premium to the coupon rate of existing debt.
E) Observing the firm's bank borrowing rate on short-term loans.