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

Q: What does Total debt include?

A: Answer: Generally, debt is an obligation imposed upon a corporation to manage its business. Total…

Q: How are bonds amortized?

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

Q: What is the difference between general obligation bonds and revenue bonds?

A: General Obligation Bonds(GOs) are bonds that are backed by the "full faith and credit" of the issuer…

Q: Explain Collateralized debt obligations?

A: Collateralized debt obligations: A collateralized debt obligation (CDOs) is a portfolio of differing…

Q: What is the distinction between debtor and creditor?

A: Accounts receivable Accounts receivable refers to the amounts to be received within a short period…

Q: How is periodic interest determined for outstanding liabilities? For outstanding receivables? How…

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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: 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 required method of amortizing discount and premium on bonds payable? Explain the…

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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 the sources of debt financing?

A: debt financing: it the amount of money borrowed by he firm to run the business.

Q: when is stated interest rate of a debt instrument presumed to be fair?

A: Financial instruments are the contract those are traded in the market. the primary financial…

Q: Define CDO, collateralized debt obligation

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

Q: What is a bond payable?

A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…

Q: Explain a debt instrument against the following criteria: Pricing conventions/Rules Seniority

A: The debt instruments refer to the financial instruments, which provide the debt funds to the…

Q: at is the relationship of Debt (Loans) to Borrowers to Financial Intermediaries?

A: The financial intermediaries are very important in the financial world and transactions and there…

Q: Define the terms "debt security" and "equity security." Include comparisons and contrasts in your…

A: Introduction: Securities: To raise money from the public or private markets, securities are the…

Q: describe the role of debt covenants in protecting creditors;

A: Debt covenants are restrictions that lenders (creditors, debt holders, investors) put on lending…

Q: debt

A: Cost of debt can be defined as the rate of interest which a company incurs on its debts. The cost of…

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: What are bond issue costs? What is an underwriter?

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: Explain Types of Debt Instruments

A: Answer: Debt instrument is like a tool a company may use in capital raising. It allows the holders…

Q: Define the term debt securities.

A: Debt security refers to a debt instrument, such as a government bond, corporate bond, certificate of…

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: What is general obligation bonds?

A: Bonds: A bond, also recognized as a fixed-income security, is a debt instrument shaped for the…

Q: How should a debt callable by the creditor be reported inthe debtor’s financial statements?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Obligation to pay back your monetary debt. What kind of obligation is involve here?

A: Obligation to pay the debt: In the context of financial responsibilities, this refers to any…

Q: What are the two ways that discount and premium on bonds due are amortized? Each one should be…

A: Solution Two ways that discount and premiums on bond are amortized are as flows Straight line method…

Q: Describe the basic methods of debt financing?

A: Every company has two major types of financing one is through raising equity shares and the other is…

Q: Which costs are included in bond issuance costs? How are they recorded?

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

Q: Define embedded rate (for debt)

A: An embedded option is the component of financial security the gives the issuer of the debt option or…

Q: Which of the following items would most likely be classifi ed as a fi nancing activity? A . Issuance…

A: Financing activities are a major part of any entity. These activities are correlated to the issuance…

Q: What are redeemable and irredeemable bonds? Explain in single sentence please

A: Redeemable bonds are the bonds which are redeemed after fixed no. of years.

Q: How is the purchase of held-to-maturity debt security at face value recorded?

A: Hold-to-maturity Debt:  These are the investment in debt securities, where the investor wishes to…

Q: As a general rule, how should long-term liabilities be reported on the debtor’s balance sheet?

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Q: Recognize the difference between equity and debt instruments.

A: solution concept Equity means the  owners of the company. The equity share holders of the company…

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: Identify the major categories of debt financing

A: Introduction : In simple words, debt refers to the source of fund under which the company issue its…

Q: Explain in words the difference between total debt and total liabilities.

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Can you explain Collateralized debt obligation

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

Q: Why A debt security pays a fixed stream of income or a stream of income that is determined according…

A: Debt instruments It is the fixed-income securities that generally make payment of fixed interest…