If a Principal Debtor Defaults on a Loan,an Absolute Surety

question 43

True/False

If a principal debtor defaults on a loan,an absolute surety will have to pay upon demand of the creditor.

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Definitions:

Year 0 Value

The initial value of an asset or investment at the starting point or inception.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to certain values.

Free Cash Flows

Funds generated by a corporation after subtracting cash spent on operational maintenance and preservation of capital assets.

Agency Relationship

A contractual relationship where one party (the principal) grants authority to another party (the agent) to act on its behalf.