Explain the nature of long term debt.
Q: Define the term Deferred Loan Repayments?
A: Answer: A deferred loan payment is nothing but a loan agreement in which the borrower may start…
Q: What are the factors on which the cost of a loan depends?
A: Cost of loan are the expenses brought about by the borrower for taking the advance because of the…
Q: Define Long-term debt. Explain the types of Long-term debt.
A:
Q: Explain the term Wraparound Loans?
A: Wraparound Loans:Wraparound Loans are also called as wrap. It is a type of mortgage loan.It allows a…
Q: Define the term loan cash flow?
A: Statement of cash flow: It refers to a financial statement that shows all the cash payments and…
Q: Explain term Buydown Loans with examples?
A: Buy down loan is a loan in which a buyer will get the loan for reduced interest rate at least during…
Q: What evidence is necessary to demonstrate the ability to defer settlement of short-term debt?
A: Short-term debt: Short-term debt refers to the current liability of an organization. This means that…
Q: Explain Collateralized debt obligations?
A: Collateralized debt obligations: A collateralized debt obligation (CDOs) is a portfolio of differing…
Q: Describe the Repayment Plans Offered by the Lender?
A: Answer: A repayment plan is a method of repaying a debt over an extended period of time, usually by…
Q: What is meant by Short-term financing?
A: Finance refers to the study of money , currency as well as the capital assets.There are basically…
Q: Is the relevant cost of debt, when calculating the WACC, theinterest rate on already outstanding…
A: Answer: For some decisions the embedded costs are significant but not for others. For example, when…
Q: Explain Current maturities of long-term debt.
A: Current maturities of long-term debt (CMLTD): It refers to such short-term obligations of the…
Q: From the standpoint of a borrower, is long-term or short-term credit riskier? Explain
A: credit risk is define as the chances of a loss due to borrower's failure to repay obligation in…
Q: What distinguishes current liabilities from long-term liabilities?
A: Liabilities Liabilities are referred to as the obligations of the business towards the creditors for…
Q: What is the loan cash flow?
A: Answer: A cash flow loan is nothing but a form of debt finance in which bank lends money usually for…
Q: What is the Importance of Accrued Interest and Loan Payments?
A: When the bonds are being purchased and sold at that time accrued interest is considered to be…
Q: Why What kind of stream of income does a debt security pay for the duration of the security? A fixed…
A: The Answer
Q: What is credit enhancement, and what effect does it have on debt costs?
A: Credit enhancement represents the strategy that improves the business' credit risk profile. It helps…
Q: Explain the addition to the interest rate, HELOC borrowers consider the issues?
A: Home buyers mostly take loans to buy the home and they will pay the debt in equated installments.…
Q: What are some types of current assets that are pledged as security for short-term loans?
A: A pledged asset is collateral pledged by a borrower to a lender (usually in return for a loan). The…
Q: What two types of current assets are frequently used as security for short-term loans?
A: Short term loans are generally obtained by companies in order to support their temporary business…
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: ________ are long-term debt instrument that promise a fixed income in the form of interest.
A: Debt instrument is a way of financing which can guarantee a fixed income, hence a less risky…
Q: Define secured loans.
A: Secured Loans: Secured loans are those for which the borrower puts up some asset as security or…
Q: Explain Loan Amortization Patterns?
A: A loan amortization pattern, as made by an amortization calculator, maybe a table enumerating each…
Q: Define Loan Refinancing?
A: Introduction: A loan refinancing permits a debtor to replace their present obligation of debt with…
Q: How can we determine the borrowing rate of return?
A: The borrowing rate of return is the return that is charged on the borrowings made by the firms or…
Q: Explain Loan Closing Costs and Effective Borrowing Costs?
A: Closing costs are the uses that buyers and vendors ordinarily pay to total a real estate deal, over…
Q: On what factors do the interest rate and repayment terms for term loans based?
A: Loan refers to the lending of money by one ore more individuals or organizations . The recipient…
Q: Explain Inflation, Mortgage Pricing, and Payment Structuring
A: Inflation: Increase in price of the good is called inflation. When inflation increases, the…
Q: Define amortized loan
A: Amortized loan is a loan in which total loan will be paid off by same periodic payments. These…
Q: Explain an example of long term liabilities.
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…
Q: What do short-term notes payable represent?
A: Short-term notes payable: short-term notes payable is a written promise made by the business to pay…
Q: Identify the major categories of long-term debt financing
A: Long-term debt is the debt that has its maturity which exceeds 1 year. Companies require long term…
Q: Define required rate of return on debt
A: The required rate of return: This rate of return equates to the minimum return an investor would…
Q: Explain the term Loan Repayment Schedule?
A: Loan is a sum of money borrowed by an individual/organization from a bank or lender that has to be…
Q: Debt crisis and solutions?
A: To run the business, corporations have to borrow the funds which will be repaid later with…
Q: Discuss how a form of debt can be classified as both Current and Long-Term Liabilities. Why do…
A: Long Term Liabilities are the liabilities that become due for more than one year. They are the…
Q: Explain Amortization Schedules and Callable Loans?
A: An amortization plan or schedule may be a total table of periodic advance installments, appearing…
Q: Explain the long-term source of finance
A: The company raises funds from various sources of finance such as equity, preference shares, debt in…
Q: Explain Early Extinguishment of Debt.
A: Definition: Liability: The claims creditors have over assets or resources of a company are…
Q: What are out of period debts? Explain?
A: Out of Period debts: It is also known as time barred debts.
Q: Explain the Market Value of a Loan?
A: The market price of Debt refers to the value investors would be willing to shop for a company’s debt…
Explain the nature of long term debt.
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