Cost of Debt

Glossary

Banking

Cost of Debt

The effective interest rate a company pays on its debts, after blending all sources of credit lines and funding. The cost of debt can refer to before-tax cost of debt, which is the company\'s cost of debt before taking taxes into account. A true cost of debt will adjust the gross cost of debt by taking into account tax deductibility of interest payments to get the after-tax cost of debt.

logo-animationlogo-animationlogo-animation

Related terms