The In Practice box on page 258 notes that tax-exempt advance refundings involving debt redemptions are no
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The “In Practice” box on page 258 notes that tax-exempt advance refundings involving debt redemptions are no longer allowed under U.S. tax law and that, as a result, the cost of debt issuance may go up for state and local governments. What are two ways states and cities can mitigate the impact of this change in tax law?
Cost Of DebtThe cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking...
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Government and Not-for-Profit Accounting Concepts and Practices
ISBN: 978-1119495857
8th edition
Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese, Daniel L. Smith
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