What is a loan amortization schedule, and what are some ways these schedules are used?

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: 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: To which element does the following definition correspond: It is a format where interest and…

A: Loan A loan refers to the amount which is borrowed from a financial or a non-financial institution.…

Q: Describe the repayment process for both a term loan and ab

A: Term loan and bonds are two different types of raising money.

Q: What is a syndicated loan? What are its advantages anddisadvantages?

A: Syndicated loan: It is moreover called as a syndicated bank facility, is loaning given by a bunch of…

Q: Effective interest amortization method uses which of the following rates to determine interest…

A: Under the effective interest method, the interest is calculated as yield to maturity multiplied by…

Q: What interest rates should be used in determining the amount of interest to be capitalized? How…

A:

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: Define mezzanine loan?

A: Mezzanine funding: Mezzanine funding is a type of funding that has together the characteristics of…

Q: The time value concept/calculation used in amortizing a loan is

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: What are the features of finance lease?

A: Lease:   Lease is a contractual agreement whereby the right to use an asset for a particular period…

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: perlod of a loan or investment

A: Compounding period and period of loan are interrelated to each other.

Q: give the definition, recognition, measurement and derecognition of "borrowing cost"

A: A uniform group of principles, standards, and procedures that explain the basic financial accounting…

Q: Explain Loan Amortization Patterns?

A: A loan amortization pattern, as made by an amortization calculator, maybe a table enumerating each…

Q: Why might the market value of a loan differ from its outstanding balance?

A: Loan outstanding balance: The outstanding balance or loan balance is the remaining amount that is…

Q: Define Loan Refinancing?

A: Introduction: A loan refinancing permits a debtor to replace their present obligation of debt with…

Q: What will be the Effect of the After-Tax Interest Cost on Loan Decisions?

A: Interest cost for loan borrowers depends mainly upon the rate of interest charged by lenders.…

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 mezzanine loan?

A: Mezzanine financing is a blend of both debt and equity financing. It is a way for firms to raise…

Q: What is meant by a term-loan agreement?

A: A Loan Agreement, also known as a term loan, demand loan, or loan contract. It basically is a legal…

Q: Which are the fundamental relationships to know in any loan refinancing decision include at least…

A: Loan refinancing decision involves replacement of an existing debt with a new debt. The intention of…

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: What is the purpose of a bridge loan?

A: Bridge loan is a short term loan taken to finance short term requirements of funds while awaiting…

Q: How do we record the interest payment (provide examples for both premium and discount amortization),…

A: Bonds are a form of debt or loan taken by the company, on which regular interest payments needs to…

Q: What is a loan amortization schedule, and what are some ways these schedules are used?

A: Loan Amortization Schedule- An amortization schedule is a table that provides the details of the…

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: What types of loans does the IMF provide?

A: IMF refers to International Monetary Fund.It is an international organization that helps in 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: What is Secured Borrowing?

A:

Q: EXplain the loan structuring?

A: Loan restructuring is designing of loan according to the requirements of the borrower and also to…

Q: What are the benefits to the back for amortizing a loan

A: In finance amortized loan is one in which fixed monthly payments are made by the borrower to the…

Q: Describe the concept of non interest bearing on loan.

A: A non-interest bearing loan is a debt for which there is no documented requirement for the borrower…

Q: Explain the term Verification of Borrower Assets?

A: Borrower is the person who take money on credit from a financial or non- financial institution.…

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 effective lending rate (ELR) and how it is derived?

A: ELR is generally used to know the true cost of lending. This concept is useful when be borrow money…

Q: The original amount of money in a loan transaction is known as what?

A: Introduction: A loan is nothing but an amount of money lent from one or more individuals or…

Q: What is an amortization schedule?

A: Long-Term Notes PayableLong-term notes payable refers to the obligation of the company in the form…

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…

Calculating the Return On A Loan