Which of the Following Is Generally Considered an Advantage of Term

question 63

Multiple Choice

Which of the following is generally considered an advantage of term loans over corporate bonds?

• A)Higher flotation costs
• B)Speed, or how long it takes to bring the issue to the market
• C)Fixed bond terms after the bond has been issued
• D)Regular interest and principal payments on specified dates
• E)Standard terms of issue requiring no negotiation between the borrowing firm and the financial institution