Raffaele
Thu Aug 15 2024
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6 answers
1263
What is the difference between OID and financing fees?
Could you please elaborate on the distinction between OID, or Original Issue Discount, and financing fees? I understand that OID refers to the difference between the price a bond is issued at and its face value, while financing fees are expenses incurred during the process of raising capital. However, I'm curious about how these two concepts differ in their nature, purpose, and potential impact on investors and issuers. Additionally, are there any specific regulations or tax implications that differentiate OID from financing fees?
