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The rate of return demanded by investors is the debtor's cost of borrowing money, so high ratings are very desirable because they reduce the borrower's overall cost of capital.
Its troubles caused huge surges in the cost of borrowing money overnight (see chart).
The mortgage-interest tax deduction doesn't eliminate the cost of borrowing money; it merely reduces it.
A higher rate, often the cost of borrowing money, is more common.
This means the cost of borrowing money is falling for the UK government.
Higher interest rates can hurt corporate profits by raising the cost of borrowing money.
Similar(20)
The price of borrowing money is a cost that must be reflected in the sale of a product.
They have been largely supplanted by the financial markets, which have a will of their own when it comes to the cost of borrowed money.
This is key to making the aftertax cost of borrowed money (or aftertax yield on excess cash) very low.
The industry's average 5% pretax return on capital over 18 years is paltry, far short of the cost of borrowed money.
Ratings, which indicate a companys ability to repay its debt obligations, determine the cost to a company of borrowing money.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com