If a firm has bonds outstanding and the firm would like to calculate the current cost of debt for the bonds, then the firm would
A) use the coupon rate of the bonds to estimate the cost.
B) use the current yield to maturity of the bonds to estimate the cost.
C) use the current coupon yield of the bonds to estimate the cost.
D) None of the above
Correct Answer:
Verified
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A)
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B)
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