Explain Collateralized debt obligations?

Q: How are bonds amortized?

A: Bond Amortization: Over the course of the bond's existence, the principal (face value) of the loan…

Q: Distinguish between a debt security and an equity security.

A: Debt Security:    Debt security refers to a financial instrument that is issued by the organization…

Q: When should debt security be classified as held-to-maturity?

A: Debt: A debt security should be classified as held to maturity only if the company has both the…

Q: list and explain the most common sources of debt financing

A: When a business needs funds for working capital or for capital expenditures then, the business…

Q: Explain how to account for the impairment of an available-for-sale debt investment.

A: Debt Investment:   A debt investment involves loaning out the money to an institution in exchange…

Q: What are advantages of debt financing?

A: The advantage of debt financing: Ownership remains with the person itself as when the person agrees…

Q: What is a debt security?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: How can we summarize the firm's ability to meet debt repayment obligations?

A: Debt repayment obligations: It means the repayment obligation for the debt held by the corporation.…

Q: Indicate how to present and analyze long-term debt.

A: Long-term debt of a company includes the amount of money which is borrowed by the company from…

Q: Explain restructuring (of debt terms)

A: Debt restructuring It is a system that organizations use to get away from the risk of default on…

Q: How is Collateralized debt obligation created. Plelase explain in details

A: Collateralized debt obligation (CDO): Collateralized debt obligation (CDO) is the bundle of loans…

Q: what is the difference between bonds payable and accounts payable? explain your answer?

A: Bond payable and account payable both are liabilities of the company , which is to be paid in future…

Q: What are some forms of off-balance-sheet financing?

A: Balance Sheet: Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of…

Q: What are the risks of debt securities?

A: Debt securities: Debt securities can be described as a type of debt instrument that is purchased and…

Q: Define  debt investment.

A: Debt Investment: Debt Investment considered as Lending money on loan to the issuing entity. The main…

Q: Define CDO, collateralized debt obligation

A: The question is based on the structure and definition of Collateralized debt obligation (CDO), the…

Q: What are the two types of debt financing?

A: Debt:   A debt is an obligation that requires on entity called the debtor to pay back a borrowed sum…

Q: Define long-term debt

A:

Q: explain the derecognition of debt;

A: Derecognition of debt As bonds are issued, then an entity may leave a bond that is outstanding till…

Q: Discuss in brief the types of collateralized debt Obligation. Please explain in details.

A: Solution-  Collateral Debt Obligation [CDO] is a sophisticated project financing outcome that's also…

Q: Explain principal (debt)

A: Debt is the amount owed by the company for a particular period from the date of the company's…

Q: sources of financing through LO

A: Long term debt is a non current liability that is liable to be paid after one or more years.

Q: When is debt financing more attractive than equity financing?

A: Debt refers to the amount borrowed by one party from another party, This arrangement of borrowing…

Q: When should a debt security be classified as held-tomaturity?

A: Debt securities: Debt security is money borrowed at a specific rate of interest which must be repaid…

Q: When is a gain recognized in a debt restructuring?

A: Debt restructuring is a process which the companies are using to avoid the risk of default on…

Q: What are the advantages and disadvantages of debt financing? Of equity finacing?

A: Financing is a process of providing funds for business activities, making purchases, and investing.…

Q: Clearly explain the difference between debt securities market and equity securities market

A: Equity securities market is the place where equities of corporates are traded, i.e. purchased and…

Q: What is the structure of Collateralized debt obligation. Please explain in details

A: A collateralized debt obligation also known as CDO is a complex structured credit product which is…

Q: Explain Collateralized Debt Obligations (CDOs)?

A: A collateralized debt obligation (CDO) is a complex structured finance product that is backed by a…

Q: Explain how to account for the impairment of held-to-maturity debt security.

A: Held to maturity securities are those securities which are purchased to be held till maturity…

Q: State the disadvantages of long-term debt financing.

A: Long term debt refers to the debt that has a maturity period of more than 1 year.They are also…

Q: Give some examples of debt financing?

A: Following are some examples of debt financing: Whereas, Debentures are a corporate or government…

Q: Is Collateralized debt obligation a good investment? Please explain in details.

A: A collateralized debt obligation also known as a CDO is a complex structured credit product which is…

Q: What are the benefits of using debt security?

A: The financial instruments which are bought by investors, or corporations, or mutual funds, are…

Q: Why should an investor use debt?

A: Debt investments represent the loan which an investor lends to earn interest along with the…

Q: What are some differences between debt-with-warrant financing and convertible debt?

A: Following are the differences between debt-with-warrant financing and convertible debt: In basic…

Q: What is subaggregation clause in sovereign debt restructuring?

A: A sovereign debt restructuring is essentially an exchange of outstanding sovereign debt instruments,…

Q: Define debt service requirements

A: Debt service requirement is very much essential for a company if it wants to maintain a good credit…

Q: Debt crisis  and solutions?

A: To run the business, corporations have to borrow the funds which will be repaid later with…

Q: What is Debt Securities Market?

A: The debt market is the place where the investments in debts or loans are traded. The participants in…

Q: Define secured debt

A: The term debt refers to the money taken out a loan from individuals, financial institutions, or…

Q: What is informal debt restructuring?

A: Debt restructuring is a method wherein a company or an entity experiencing financial distress and…

Q: Identify and describe the principal kinds of debt securities.

A: Business needs funds to operate the activities. Issuing securities is one of the ways to collect the…

Q: Can you explain Collateralized debt obligation

A: A collateralized debt obligation (CDO) is a complicated dependent finance product this is…