Review problem-ex-post cost of borrowing

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Question: Ex-Post Cost of Borrowing. Many firms in many countries borrow at nominal costs that later prove to be very different. For example, Deutsche Bank recently borrowed at a nominal cost of 9.59% per annum, but later 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 later 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)?

Reference no: EM131708245

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