What Are Three Important Forms of Long-Term Debt

question 74

Multiple Choice

What are three important forms of long-term debt?

• A) trade credit, accounts payable, and bank loans
• B) term loans, mortgage loans, and bonds
• C) accounts payable, notes payable, and commercial paper
• D) treasury bills, certificates of deposit, and accounts payable

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Definitions:

Annually

Refers to events or phenomena that occur once every year.

Maple Bonds

Bonds issued in Canadian dollars by foreign companies in the Canadian market, allowing investors to invest in foreign entities while avoiding currency risk.

Currency Risk

The potential for financial loss resulting from fluctuations in exchange rates affecting investments or transactions in foreign currencies.

Foreign Bonds

Bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold. Thus, a Canadian firm selling bonds denominated in Swiss francs in Switzerland is selling foreign bonds.