Can you explain Collateralized debt obligation

Q: definition and recognition criteria of liabilities

A: Liability is the obligation to be repaid or loss to be met in future.

Q: What is the debt with a subjective acceleration clause in the exposure draft, Topic 470?

A: The is based on the concept of accounting of debt and accounting treatment of debt in books of…

Q: Secured vs Unsecured debt

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

Q: Explain how the conversion feature of convertible debthas a value (a) to the issuer and (b) to the…

A: (a)The conversion feature is carried on by changing the convertible debt to the common stock. The…

Q: Discuss the accounting problems associated with interest capitalization.

A: Interest capitalization: Capitalization interest is the cost of funds that are used to finance for…

Q: Discuss 3 disadvantages 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: 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: Discuss 3 advantages with examples of collateralized debt obligation. Please explain in details

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

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: Why What kind of stream of income does a debt security pay for the duration of the security? A fixed…

A: The Answer

Q: Define CDO, collateralized debt obligation

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

Q: Perpetual debt instruments a.    Are compound financial instruments b.    Are derivative financial…

A: Perpetual debt instruments seem to be debt funds that do not have an expiration date. The issuer…

Q: Define debtor-in-possession (DIP) financing

A: Introduction: A debtor in possession (DIP) is an individual or company that has filed for chapter 11…

Q: uded debt i t will increa

A: Introduction : In simple words, recapitalization refers to the process in which a firm changes its…

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: 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: under the conceptual framework for internationai financial reporting a non-contraling interest fits…

A: Non-controlling interest Non-controlling interest is also referred to as the minority interest…

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: ation of debt income from qualifi

A: The Qualified Principal Residence exclusion enables a taxpayer to deduct up to $2,000,000 of the…

Q: What are the issues in the exposure draft, Debt (Topic 470)? Analyze it

A: The FASB issued an Exposure draft titled debt(470) which aims at simplifying the classification of…

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: Accounting The procedure that best reveals the existence of contingent debts is

A: Contingent liability is a liability that may or may happen on a future date that is based on an…

Q: Gains or losses from the early extinguishment of debt that is refunded can theoretically be…

A: Early extinguishment of debt: It refers to the situation in which the issuer calls the debt…

Q: How is interest determined in a capital lease transaction? How does the approach compare to other…

A:

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: 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: Explain bond redemption.

A: A Bond is an instrument which guarantees fixed return to the investor. A bond involves no risk so…

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: 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: 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: Define secured debt

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

Q: Describe the accounting problems associated with interest capitalization.

A: Interest capitalization: Capitalization interest is the cost of funds that are used to finance for…

Q: interest expense, which of the following * ?occurs firs Incurring The Interest Expense C Paying The…

A: Accrued interest expense implies interest expense that has been incurred but not yet paid. It is a…

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…