When estimating the cost of debt financing from bonds,a firm can use the yield-to-maturity as the before-tax cost of debt.

Name: When estimating the cost of debt financing from bonds,a firm can use the yield-to-maturity as the before-tax cost of debt.
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The yield-to-maturity reflects the total return an investor can expect from a bond if it is held until maturity, assuming all interest payments are reinvested at the same rate. Therefore, it represents the before-tax cost of debt for the issuing firm.

When Estimating the Cost of Debt Financing from Bonds,a Firm