BBG 101 Lecture Notes - Lecture 8: Electric Charge, Floating Charge, Corporate Bond

• School: Tunxis Community College
• Department: Business – General
• Course: BBG 101
• Professor: Boccaccio

Document Summary

Debt is an amount of money borrowed today from a lender to be repaid in the future. It is a contractual obligation which commits the borrower to interest and principal repayments. Default is failure to meet the required payments when due. One of the risks associated with debt finance. Interest only, principal and interest, capitalised interest. Maintain certain rations at a minimum or maximum. Securities with a term of less than one year. These instruments, issued in the money market, raise funds when they are first issued. Purchaser is lender and issuer is borrower. Issued at a price less than their face value. Interest is difference between security"s price and face value. Requiring the person whom it is addressed to pay on demand, or at a fixed or determinable future time, A sum certain in money to or to the order of a specified person, or to bearer. Provides an acceptance of the credit facility to be offered.