Many firms in many countries every year borrow at nominal costs which prove to be very different
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Many firms in many countries every year borrow at nominal costs which prove to be very different after the fact. For example, not too long ago Deutsche Bank borrowed funds at a nominal cost of 9.59% per annum, but at a later date that debt was selling to yield 7.24%. At the same time, the Kingdom of Thailand borrowed at a nominal cost of 8.70%, but after the fact found the debt was sold in the market at a yield of 11.87%. What caused these changes, and what might management do to benefit (as Deutsche Bank did) rather than suffer (as the Kingdom of Thailand did)?
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Related Book For
Multinational Business Finance
ISBN: 978-0132743464
13th edition
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
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