The ________ is the discount rate or internal rate of return that equates the present value of all the future interest rate and principal payments to the net proceeds received by the issuer.

Question

Quizplus · Accepted Answer

The all-in-cost refers to the total cost associated with issuing a bond, including the interest payments and any other fees or costs. It is the discount rate that makes the present value of all future cash flows (interest and principal payments) equal to the net proceeds received by the issuer, effectively representing the true cost of borrowing.

The ________ Is the Discount Rate or Internal Rate of Return