When analysing a company's cost of debt, we are typically interested in
A) the cost of the debt on the date that the analysis is being completed.
B) the coupon rate on the company's bonds.
C) the risk-free rate plus half a percent.
D) none of the above.

Question

Quizplus · Accepted Answer

The cost of debt is typically analyzed as the current yield or yield to maturity on the company's existing debt, reflecting the cost on the date of analysis.

When Analysing a Company's Cost of Debt, We Are Typically