Examlex
Discuss four sources of financing for starting up a small business.
Maturity Risk Premium
The additional yield that investors demand to compensate for the risk of holding a longer-term debt instrument, over and above the risk of short-term instruments.
Default Risk
The risk that a borrower will not make the required payments on their debt obligations, leading to a default.
Semiannual Coupon
Interest payments made to bond investors every six months as part of the bond's fixed-income return.
Bond Rating
An evaluation provided by a credit rating agency regarding the creditworthiness of a bond issuer, affecting the interest rates and investment appeal of its bonds.
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