If a Company Secures a Three-Year Bank Loan, This Is

question 290

Multiple Choice

If a company secures a three-year bank loan, this is considered

• A) short-term financing.
• B) asset funding.
• C) liability funding.
• D) long-term financing.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until the maturity date, considering all interest payments received and principal repaid.

Total Rate Of Return

The comprehensive measure of investment performance, combining both capital gains and interest or dividends, over a specific period.

Par Value

The face value of a bond or stock, as stated by the issuing company, which might not reflect its market value.

Callable

A feature of a financial instrument that allows the issuer to repurchase or redeem the instrument before its maturity date.