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The pre-tax cost of debt for a firm: is based on the yield to maturity on the firm's outstanding bonds. is equal to the coupon
The pre-tax cost of debt for a firm:
is based on the yield to maturity on the firm's outstanding bonds.
is equal to the coupon rate for the latest bond issue.
is equivalent to the current yield on the outstanding bonds of the firm.
is based on the yield to maturity that existed when the currently outstanding bonds were originally issued.
has to be estimated as it cannot be directly observed in the market.
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