Exam 10: Medium-To-Long-Term Debt

Corporations and governments use long-term debt financing called:

Bonds are:

In relation to long-term financing,a fully drawn advance is a:

The inclusion of covenants in a term loan is designed to protect the borrower from taking on too much debt.

A/An _______ lease is a short-term arrangement where the lessee agrees to make periodic payments to the lessor for the right to use the asset.This arrangement usually contains only minor or no penalties for cancellation of the lease.

For what type of lease does the lessee provide a significant part of the funds to purchase the asset,often losing the advantage of leveraged leasing,while a financial institution provides the remainder?

Long-term debt can be categorised as financing with an initial maturity:

When a lender includes conditions in a loan agreement to protect its loan,these are known as:

In Australia which of the following long-term debt markets are the largest?

When market interest rates increase after a bond is issued,the:

When the coupon rate of a bond is below the current market interest rates,a bond will sell at:

When a loan agreement contains actions for a borrowing company to comply with,such as supplying financial statements,these are called:

A debenture is a/an:

Many years ago,banks:

A company has two outstanding bonds with the same features,apart from their coupon.Bond A has a coupon of 5%,while bond B has a coupon of 8%.If the market interest rate changes by 10%:

Compared with unsecured notes,a debenture can offer:

If a company wished to structure its financing so it repaid funds borrowed only when a project begins to have positive cash flows,it would choose a/an:

In relation to an issue of bonds,the method where the bond offer is made only to institutions that deal regularly in securities is called:

A positive loan covenant can state that a company must maintain a minimum level of working capital.

The _______ value of a bond is also called its par value.Bonds with a current price greater than their par value sell at _______,while bonds with a current price less than their par value sell at _______.