(8 of 17) Ch.14 - Cost of debt: explanation & example
Cost of debt. (Debt is the same thing as loans, which include corporate bonds.) This is the annual cost to the Firm.
From the perspective of the investors who buy this Firm's bonds, "cost of debt" is nothing by "return on bonds" every year. This is also the same thing as "yield to maturity" on bonds, abbreviated as YTM.
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