With regard to debt securities, which of the following statements is correct?

Select one:

A.

Issuing debt securities at a premium results in the borrowing corporation receiving funds below the stated price.

B.

Provided the issuer is not in the business of lending money, issuing debt securities at a premium will normally reduce the after-tax cost of financing for the issuer.

C.

Provided the issuer is not in the business of lending money, issuing debt securities at a premium will normally increase the after-tax cost of financing for the issuer.

D.

Issuing debt securities at a discount results in the borrowing corporation receiving funds above the stated price.