Why What kind of stream of income does a debt security pay for the duration of the security? A fixed stream of income or a stream of income that is decided by a defined formula?

Q: What does Total debt include?

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

Q: What are Contingent Liabilities?  Give an example.  What are the factors that determine the reason…

A: A liability, the occurrence of which is uncertain that is it may or may not occur is known as a…

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: What are advantages of debt financing?

A: The advantage of debt financing: Ownership remains with the person itself as when the person agrees…

Q: Why is the relevant cost of debt the interest rate on new debt, not that on alreadyoutstanding, or…

A: The pre-tax cost of debt for a company, rd, is the interest rate the company should settle on fresh…

Q: What is the difference between the stated interest rate and the market interest rate?

A: Bonds PayableBonds payable are referred to long-term debts of the business, issued to various…

Q: What are contingent liabilities?

A: Liabilities by and large, are a commitment to, or it is an amount that one owes to another person.…

Q: how do compute thesocial security taxable earnings?

A: Federal income taxes (FIT) are imposed in USA. Tax is calculated by applying tax rates which…

Q: Indicate how to present and analyze long-term debt.

A: Long-term debt of a company includes the amount of money which is borrowed by the company from…

Q: Difference between current and long term liabilities?

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

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: 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: 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: Explain the Structuring the Payment for a Target Debt Coverage Ratio?

A: Coverage Ratios are the ratios that depict that on an average how a firm would be able to cover its…

Q: Define long-term debt

A:

Q: Why do we use an after-tax figure for cost of debt but not for cost of equity?

A: Cost of debt is the interest payments a company needs to make for debt financing, whereas 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: What makes current liabilities different from long term liabilities?

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: What are the current liabilities? Give some examples of current liabilities?

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

Q: Define the term the effective interest rate covering the payment period?

A: Interest rates can be of two types- Simple interest rate- This is the interest rate stated in the…

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: gs or debt) app

A: The explanation is given as,

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

A:

Q: Explain Collateralized Debt Obligations (CDOs)?

A: A collateralized debt obligation (CDO) is a complex structured finance product that is backed by a…

Q: expense on short term debt should be based on projected balances and short term interest rates.…

A: Basic Concept of accounting

Q: Explain how to account for the impairment of held-to-maturity debt security.

A: Held to maturity securities are those securities which are purchased to be held till maturity…

Q: What is income bond?

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: In what way do current liabilities and long-term liabilities differ from each other?

A: Current liabilities are liabilities that are due within one year. In other words, current…

Q: What are the benefits of using debt security?

A: The financial instruments which are bought by investors, or corporations, or mutual funds, are…

Q: How do premiums and discounts on long-term debt securities affect interest expense?

A: Long term debts are used by the large organisations to raise the fund and utilise them for various…

Q: How are Effective Interest Rates calculated?

A: Effective interest rate is the interest earned on the investment or saving account.

Q: What are the advantages and disadvantages of short-term versus long-term debt asidentified in this…

A: Short term debt: Short term debts are debts or financial commitments that are expected to be settled…

Q: What is the difference between fully secured liabilities, partially secured liabilities, and…

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

Q: What are the advantages and disadvantages ofusing short-term debt as a source of financing?

A: Short-term debt: It is a kind of debt that is repaid in a small span of time or within a year. The…

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: Define current portion of long-term debt

A: Long-term debts are liabilities that is to be repayable in more than one year. Such liabilities are…

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

A:

Q: What does the disclosure note for debt includes?

A: Debt securities: The financial instruments which are bought by investors, or corporations, or mutual…

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…