The ________ of a firm's debt can be used as the firm's current cost of debt.

Question

Quizplus · Accepted Answer

The yield to maturity (YTM) of a firm's debt is considered the current cost of debt because it reflects the total return an investor expects to receive, assuming the bond is held to maturity. It accounts for all coupon payments and the difference between the bond's current market price and its face value, providing a comprehensive measure of the bond's cost to the issuer.

The ________ of a Firm's Debt Can Be Used as the Firm's