Which of the Following Are Generally Considered Advantages of Term

question 27

Multiple Choice

Which of the following are generally considered advantages of term loans over publicly issued bonds?

• A) Lower flotation costs.
• B) Speed,or how long it takes to bring the issue to market.
• C) Flexibility,or the ability to adjust the bond's terms after it has been issued.
• D) All of the above.
• E) Only answers b and c above.

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Definitions:

Accumulated Amount

The total amount accumulated over time, considering various factors like initial principal and compound interest.

Compounded Monthly

The process of adding interest to the principal sum of a deposit or loan on a monthly basis, leading to interest earning interest.

Intercompany Loan

A loan made from one business entity to another within the same organization, often used for internal financing purposes.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company.