medium · Debt Capital Markets pricing-yields-curve
Which of the following is true regarding the impact of Upfront Fees on the borrower's 'all-in cost' of debt?
- Fees are tax-deductible only if the bond is issued at a premium
- Fees increase the effective yield above the stated coupon rate
- Fees decrease the yield to maturity for the lender
- Fees have no impact because they are paid from proceeds
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