Discuss the relevant rates which are used in assessing the Cost of Capital of Commercial Banks. 

The cost of capital is a crucial concept in financial management as it represents the required return rate for a company to attract funds from investors and finance its projects or operations. Commercial banks, being financial institutions, also have a cost of capital that is relevant to their business operations. Let's discuss the relevant rates used in assessing the cost of capital of commercial banks:

1. Cost of Debt (Interest Expense):
The cost of debt for a commercial bank is the interest rate it pays on its borrowings and other debt instruments. This includes interest paid on deposits, bonds, interbank borrowing, and other forms of debt. The cost of debt is a critical component of the bank's overall cost of capital, as debt is often a significant source of funding for banks.

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