62

Demon 62 A firm's cost of debt often differs from the yield reported on its bonds because Marked out of 100 Flaggestion Select one: On the firm's cost of debt is unknown when the bonds are first sola Ob the underwriting costs for new bond issues are not tax deductible, raising the cost of debt relative to bond yields o the interest paid on corporate bonds is tax deductible Od the cost of debt changes infrequently since bond rating agencies do not change their recommendations often O especulators can drive the cost of debt down so that bond yields exceed it