What Are the Two Main Components of a Normal Debt

question 2

Multiple Choice

What are the two main components of a normal debt service payment?

• A) interest and coupon
• B) interest and advertising
• C) advertising and principal
• D) interest and principal

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Definitions:

Plaintiff Forfeiture

A legal penalty where a plaintiff loses the right to claim certain benefits or privileges due to a failure to meet necessary legal requirements or actions.

Agency Relationship

A legal bond in which one person, the agent, acts on behalf of another, the principal, in transactions with third parties.

Principal

In finance, the original amount of money invested or loaned, before interest.

Agent

An individual or entity authorized to act on behalf of another person or entity, known as the principal, in various transactions or negotiations.