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(Domestic versus Eurobond borrowing costs) A firm can issue an eight-year public debt issue at par with an 11% coupon in the domestic market. It can...

A8. (Domestic versus Eurobond borrowing costs) A firm can issue an eight-year public debt issue at par with an 11% coupon in the domestic market. It can also issue 11.25%Eurobonds. If all other expenses are equal, which issue offers the firm the lower borrowing
cost?

This question was asked on May 13, 2010.

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