HLT Loans Typically Have All of the Following Characteristics Except

question 90

Multiple Choice

HLT loans typically have all of the following characteristics except which of the following?

• A)They have a short maturity of less than three months.
• B)They are secured by assets of the borrowing firm.
• C)They have floating rates tied to LIBOR or some other short-term index.
• D)They have strong covenant protection.
• E)They are term loans.

---

Definitions:

Proceed

To proceed means to move forward or continue with an action or process after a pause or interruption.

Legal Aid

A service designed to provide free or low-cost legal assistance to those unable to afford legal representation.

Yearly Return

The amount of profit or loss realized from an investment over a one year period, usually expressed as a percentage.

Fixed Costs

Costs that do not change with the level of output or activity, over a certain period or range of production.