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Use the following information to answer the question(s) below.
Galt Industries is trading for $20 per share and has 25 million shares outstanding. Galt Industries has a debt-equity ratio of 0.4 and its debt is zero coupon debt with a ten year maturity and a yield to maturity of 8%.
-Which of the following best describes Galt's debt using a put option?
Interest Income
Income earned from deposit accounts or investments through the receipt of interest payments.
Interest Rate
The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
Note Maturity
The date on which a note's principal and any remaining interest is due to be paid.
Quarterly Interest
Interest calculated and paid at three-month intervals.
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