Debt issuance cost are

Answers 2

Answer:

Debt issuance costs are those associated with issuing loans and bonds, such as fees and commissions paid to investment banks, law firms, auditors and regulators.

AI generated Answer

. Quick Answer: Debt issuance costs are expenses associated with the creation of a debt instrument, such as bonds, and can include such items as registration fees, underwriting fees, and legal fees. Full Explanation: Debt issuance costs are expenses associated with the creation of a debt instrument, such as bonds. These costs can include such items as registration fees, underwriting fees, and legal fees. Registration fees cover the registering of the bond or loan with a regulator, such as the Securities and Exchange Commission. Underwriting fees are paid to the underwriters for their services in helping to market the debt security in an effort to find buyers. Legal fees cover the costs associated with creating the bond or loan document, such as ensuring all provisions comply with applicable laws and regulations. Debt issuance costs must be paid out of the amount raised from the debt offering and therefore effectively reduce the amount of funds available to the issuer.
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