What Is the Logic Behind Using Just One Cost of Debt

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The Answer is The logic behind using just one rate-a long-term yield-for both short-term and long-term debt is that while short-term yields may differ from long-term yields (usually lower),over a long period,short-term rates on average tend to be similar to long-term rates.This logic is consistent with the "unbiased expectations theory"

What Is the Logic Behind Using Just One Cost of Debt

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