MHA 706: MOD 5 - LONG TERM DEBT FINANCING EXAM QUESTIONS WITH VERIFIED ANSWERS
0 view 0 purchase
Course
MHA 706
Institution
MHA 706
MHA 706: MOD 5 - LONG TERM DEBT FINANCING EXAM QUESTIONS WITH VERIFIED ANSWERS
What are the 4 Primary Factors that Influence the general level of interest rates?
- Investment opportunities
- time preference for consumption
- risk
- inflation expectations
What is the relation between INTEREST ...
What are the 4 Primary Factors that Influence the general level of interest rates?
- Investment opportunities
- time preference for consumption
- risk
- inflation expectations
What is the relation between INTEREST RATE and INVESTMENT
OPPORTUNITIES?
More opportunities, higher interest rate
What is the relation between INTEREST RATE and TIME PREFERENCE?
Less time horizon, greater interest rate
What is the relation between INTEREST RATE and RISK?
Higher risk, higher interest
What is the relation between INTEREST RATE and INFLATION?
higher economic inflation, higher interest rates
What is Term Loan?
What are examples of Loans?
- Borrower agrees to make a series of interests in principal payments on specified dates
to a lender.
, - Bank Loan / Student Loan / Mortgage Loans
What is a Bond?
- Similar debt instrument as Term Loan but are "issued"
- Mostly issued in "denominations" of 1k, 5k, 10k, etc.
What are the three types of Bonds?
- Treasury Bonds (Federal Government)
- Corporate Bonds
- Municipal Bonds (not-for-profit)
What are the three kinds of Treasury Bonds?
- Treasury Bills: Maturity of one year or less
- Treasury Notes: Maturity around 2 to 10 years
- Treasury Bonds: Maturity more than 10 years.
What are the two types of Corporate Bonds?
- Mortgage Bonds (secured with assets / property)
- Debentures (no security)
What is Public Placement vs. Private Placement?
Public Placement - Public may purchase bonds
Private Placement - Per investor or investor group, usually $10m or less
Debt Contracts are known by what three other names?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AcademicSuperScores. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
