When a corporation issues a long-term bond, one of the factors influencing the bond's interest rate is the credit rating of the issuer. Another factor is the:

When a corporation issues a long-term bond, one of the factors influencing the bond's interest rate is the credit rating of the issuer. Another factor is the:


A) call loan rate.

B) par value of the bond.

C) tax status of the bond.

D) cost of money in the marketplace.



Answer: D) cost of money in the marketplace.


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