What are the two types of debt financing?

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: 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: How are bonds amortized?

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

Q: the lending operation, how many types of loans security?

A: In lending operations banks for their safety of loans ask  for some collateral.You have to provide…

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: Compare the advantages and disadvantages of debt andequity financing, and explain the two major…

A: Debt Financing: Debt financing refers to borrowing money from outside to meet the capital…

Q: Secured vs Unsecured debt

A: Secured Debt: These are debts backed up with some collateral like assets. Hence the borrower of the…

Q: what is the best provisioning methodology in loan impairement and why?

A: Impairment refers to a reduction in an asset's value. It's similar to depreciation but it's applied…

Q: How can we determine the amount of debt financing through bonds?

A: When the firm raises funds through the sale of its long-term or short-term debt instruments then…

Q: What are the primary differences between debt financing and equity financing?

A: Financing refers to providing the funds to the business for business activities, individuals and…

Q: What are the four categories of collateral value for secured loans?How does each affect credit risk?

A: Real property (e.g., land, buildings) Tangible personal property (e.g., equipment, vehicles)…

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: What are the differences and similarities between debt financing and equity financing?

A: Similarity between debt and equity finance. 1 Both bonds and equity are traded in market. 2 Prices…

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: What are the differences between a debtor and a creditor?

A: Creditor: Creditor is a person or a company who has provided fund or loan, and hence, has a claim…

Q: What does the debt to equity ratio shows, and how is it calculated?

A: Debt to equity ratio and its implication:The ratio of company’s total debt to the total…

Q: How to record purchase of a  debt investment? Give an example.

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Explain Labor and Material Payment Bonds and Completion Bonds?

A: Bonds are defined as units of corporate debts which are issued by the companies & are…

Q: What is the process of calculating the remaining balance of different types of loans?

A: The remaining balance of a credit plan equation can be part of two sections, the future estimation…

Q: list advantages and disadvantages of debt and common equity

A: Debts are the borrowed funds and debenture holders are creditors of the firm. Debts are those funds…

Q: What are bonds classified as?

A: Issue of bonds is a source of funds of a company. They are an acknowledgement of debt taken by the…

Q: Define secured loans.

A: Secured Loans: Secured loans are those for which the borrower puts up some asset as security or…

Q: re direct and indirect forms of financing.

A: Direct financing is no intermediaries involved and indirect financing is not direct but through…

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: Name the two types of debt financing?

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

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: 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: What is Secured Borrowing?

A:

Q: How to calculate the appropriate interest expense based on the amount of outstanding debt using…

A: When the company borrows funds from the people, it has to pay them a certain amount for the borrowed…

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…