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The Average Rate of Return That Investors Require to Provide

Question 42

Multiple Choice

The average rate of return that investors require to provide funds to the firm in the form of debt is the ________. 


A) average coupon rate on the firm's bonds
B) average yield to maturity (YTM) on the firm's bonds
C) average maturity value of the firm's bonds
D) firm's required rate of return
E) average internal rate of return (IRR) the firm earns on its assets

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