Defining Financial Terms

Bonds are a debt investment, meaning the purchaser of the bond is loaning money to the company or government for a set period. They have a fixed interest rate, meaning the investor knows how much interest will be earned on the loan since the rate will not change.

Debt capital: borrowing someone else’s money to finance the business under the condition that the money plus accrued interest must be paid back in full by an agreed upon date in the future

Assets are to be recorded and valued based of the type of asset there are.

Bonds are a debt investment where investors lend money to a company or entity (i.e. government). Some features of a bond are they have a face value, have a maturity date, used to raise funds, some are tax exempt, risk of default if company goes under, and bought for less than maturity value. One example happened in America during World War II when the government started selling war bonds to help fund the war and to help take money out of circulation to help control spending. At the time you could buy a $25 bond for $18.75 that would mature in 10 years. They give a yield of only 2.9%. There are three main categories of bonds 1) corporate, issued by companies 2) municipal bonds,

Debt, the financial fall in which you intend to save yourself from. Navigating a way forward without falling into any pitfalls, is worth trying. The world of credit is a maze, waiting to be solved. Only a few has passed and many have failed. Debt is a “liability or obligation to pay or render something”(dictionary). In order to figure out this credit maze, we must first have an understanding of what credit is. The only way to get into this debt is from not being aware of credit. Credit is “the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future”(dictionary). This credit maze has many different situations that you may encounter with such as student loans. This student debt

Loan – this refers to the money borrowed by the company, for example, for productions costs. This money is expected to be paid back to the lender with interest.

(TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called:

Debt is simply money that is owed, and it can be very dangerous to get into. Many people, even rich people can go into massive amounts of debt and be nearly unable to escape it and get all of their money paid back. Debt can include things like loans for credit cards and other things, such as loans taken out to pay for things that current cash reserves can’t pay for. A lot of celebrities have gone into debt, and I will be explaining one celebrity’s debt; Kanye West. On February 13th Kanye announced that he was approximately $53 million in personal debt.

* Yield is the dividend yield, which is obtained by dividing the firm's annual cash dividend by the closing price of the stock that day.

Debt financing, by contrast, is cash borrowed from a lender at a fixed rate of interest and with a predetermined maturity date. The principal must be paid back in full by the maturity date, but

A debt asset in which an investor lends funds to an entity, firm or government that have a loan of funds for a defined period at a fixed interest rate. Bonds are used by firms municipalities, states, and United States and foreign government to finance a diversity of projects and activities, bonds are commonly referred to as fixed income.

Debt bondage, also known as debt slavery or bonded labor, is a person's pledge of labor as security for the repayment of a debt or other obligation. The services required to repay the debt may be undefined, and the services' duration may also not be specified.

Generally, firms can choose among various capital structures in order to maximize overall market value of the company. It is proposed however, that

The Governments debt as a percentage of GDP, otherwise called debt to-GDP ratio. This is the measure of national debt a nation has in rate of its Gross Domestic Product. Fundamentally, Government debt is the cash owed by the focal government to its leasers. There are two sorts of government debts: net and gross. Gross debt is the amassing of exceptional government debt which may be as government bonds, credit default swaps, coin swaps, unique drawing rights, credits, protection and benefits. Net debt is the contrast between gross debt and the monetary stakes that legislature holds. The higher the debt- to-GDP ratio, the more improbable the nation will pay its obligations back, and more probable the nation is to default on its obligation commitments.

Bonds: bonds are also long term debts that are issued by government or business, which indicates that an amount of money has