To the company, the cost of interest payments on bonds (issued debt) is reduced by the amount of tax savings.
TRUE

Name: To the company, the cost of interest payments on bonds (issued debt) is reduced by the amount of tax savings. TRUE
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

This is because interest payments on bonds are tax deductible, meaning that the company can deduct the amount of interest paid from its taxable income, resulting in a lower tax bill. This tax savings effectively reduces the net cost of the interest payments.

To the Company, the Cost of Interest Payments on Bonds