appropriate discount rate to use when analyzing a refunding decision is the after-tax cost of new debt, in part because there is relatively little risk of not realizing the interest savings.

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This statement is true. The discount rate used in a refunding decision should reflect the opportunity cost of the funds being used to finance the refunding, which is typically the after-tax cost of new debt. There is little risk of not realizing the interest savings because the refunding is typically done to take advantage of lower interest rates, and the interest savings reduce the overall cost of borrowing.

Appropriate Discount Rate to Use When Analyzing a Refunding Decision