Subsidiary Company S has $1,000,000 of bonds outstanding. The bonds have 10 years to maturity and pay

Question:

Subsidiary Company S has $1,000,000 of bonds outstanding. The bonds have 10 years to and pay interest at 8% annually. The parent has an average annual borrowing cost of 6% and wishes to reduce the interest cost of the consolidated company. What methods could be used to maintain the subsidiary as the debtor?
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...