A firm can estimate it's cost of debt by finding the yield on bonds issued by other firms with similar ratings and maturities.

Name: A firm can estimate it's cost of debt by finding the yield on bonds issued by other firms with similar ratings and maturities.
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This is a commonly used method for estimating a firm's cost of debt. By looking at the yields on bonds issued by other firms with similar ratings and maturities, a firm can estimate the interest rate it would have to pay on its own debt.

A Firm Can Estimate It's Cost of Debt by Finding