The Prepayment Privilege Allows the Borrower to Make Early Cash

question 96

True/False

The prepayment privilege allows the borrower to make early cash payments toward the principal balance on their loan.

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Definitions:

Capital Structure

The mix of debt, equity, and other securities that a company uses to finance its overall operations and growth.

Lend Out

The act of providing money or assets to another party with the expectation that it will be returned or repaid, often with interest.

Debt Issue

The raising of funds through the sale of bonds, notes, or other forms of debt to investors.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.