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Hi everyone, I'm struggling with cost of capital in Financial Modeling. Cost of Debt: I was told by my professor that I should calculate cost
Hi everyone, I'm struggling with cost of capital in Financial Modeling.
Cost of Debt: I was told by my professor that I should calculate cost of debt by finding the yield to maturity on the bonds of a company. How does this work when there are multiple bonds outstanding with different maturities/yields? Would it be the newest issue? If so, would the term structure matter other than with calculating yield to maturity?
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