The firm normally issues long-term debt

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Reference no: EM132028732

a. How valid is an estimate of the cost of debt based on 15-year bonds if the firm normally issues 30-year long-term debt? If you believe the estimate is not valid, what could be done to make the 15-year cost a better proxy for the 30-year cost? (Hint: Think about the yield curve.)

Reference no: EM132028732

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