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How valid is an estimated of the cost of debt base on 15-year bonds if the firm normally issues 30-year long term debt? If you
How valid is an estimated of the cost of debt base on 15-year bonds if the firm normally issues 30-year long term debt? If you believed the estimate is not valid, what could be done to make the 15-year cost a better proxy for the 30-year cost. (Hint: Think about the yield curve.)
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