Which of the following sources of debt finance is likely to be the most expensive for the company over the full term of the debt?


A large, listed company is planning a major project that should greatly improve its share price in the long term.

These plans require a significant capital cost that the company plans to finance by debt.

All of the debt options being considered are for the same duration of time.

Which of the following sources of debt finance is likely to be the most expensive for the company over the full term of the debt?
A . Bonds
B . A finance lease
C . Convertible bonds
D . Bank loan

Answer: C

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