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During the Covid-19 Outbreak, many companies in the US have tapped the debt market to raise capital. Although the US Treasury Bond yields are very
During the Covid-19 Outbreak, many companies in the US have tapped the debt market to raise capital. Although the US Treasury Bond yields are very low, American corporations have to borrow at much higher interest rates (e.g., American Airlines and Carnival Corporation, United Airlines, etc, have to offer double-digit coupon rates).
Discuss the factors behind this high cost of debt incurred by many American corporations.
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