Debt Financing and Interest Rates 1. Cost of Borrowing Therefore, cost of borrowing is fundamentally the nature of debt financing, which mostly hinges on prevailing interest rates. Normally, debt financing will occur when business generates capital though loans, bonds, and any other form of debt instrument which is repaid with an interest payment. The interest rate that a country’s ... https://finxl.in/equity-research-online-classes-courses-training.html