The all-in cost of debt differs from the cost of debt in that:

Question

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The all-in cost of debt includes not only the cost of debt but also any associated debt issuance costs such as underwriting fees, legal fees, and other expenses incurred in issuing debt. A is incorrect as it does not address the inclusion of debt issuance costs. C is incorrect since the two costs can differ if debt issuance costs are included. D is incorrect as it includes costs that have already been repaid, which would not be included in the all-in cost.

The All-In Cost of Debt Differs from the Cost of Debt