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 current yield-to-maturity of a firm's bonds affects the interest rate the firm must pay on debt. The higher the yield-to-maturity, the higher the interest rate the firm must pay on its debt. This, in turn, increases the cost of debt for the firm.

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