Debt That May Be Extinguished Before Maturity Is Referred to As

question 32

Multiple Choice

Debt that may be extinguished before maturity is referred to as:

• A)sinking-fund debt.
• B)debentures.
• C)callable debt.
• D)indenture debt.
• E)None of the above.

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Definitions:

Overdue

Pertaining to a payment, obligation, or duty that has not been fulfilled by its due date.

Due Date

The specified day by which a task needs to be completed or a payment needs to be made.

Instrument

A formal legal document that signifies a monetary value or evidences a transaction involving financial rights or property.

Without Recourse

Refers to an agreement where the seller is not responsible for any issues that arise after the sale is completed, commonly used in bill of exchange and note transactions.