Which of the Following Is True of Senior Debt

question 12

Multiple Choice

Which of the following is true of senior debt?

• A)The rate on senior debt is 2% to 3% above prime
• B)Senior debt is usually about a quarter to a third of total LBO debt
• C)The term is usually 5 to 10 years
• D)All of the above

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Definitions:

Matrix

A rectangular array of numbers, symbols, or expressions, arranged in rows and columns, that is used in mathematics to represent and solve linear equations and perform other operations.

Linear Equations

Algebraic equations where each term is either a constant or the product of a constant and a single variable, with no variables multiplied together or raised to any power higher than one.

Linear Equations

Equations of the first degree, meaning they can be represented as a straight line on a graph with variables that have no exponent or are to the power of one.

Mixed Nuts

A term generally referring to a combination or assortment of different types of nuts mixed together.