You are trying to estimate the cost of debt for a firm. The firm has one bank loan and two bonds outstanding. The bank loan has an interest rate of 6%. The first bond has 2 years left to maturity and a 5% YTM. The second bond has 11 years left to maturity and a 7% YTM. What should you use for the cost of debt?

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Okay lets break this down stepbystep The bank loan has an interest rate of 6 The fir... View the full answer