Fill in the blanks by choosing the appropriate term from the following list:
lease, funded, floating-rate, eurobond, convertible, subordinated, call, sinking fund, prime rate,private placement, public issue, senior, unfunded, eurodollar rate, warrant, debentures, term loan.
a. Debt maturing in more than 1 year is often called ___FUNDED_ debt.
b. An issue of bonds that is sold simultaneously in several countries is traditionally called a(n) ___EUROBOND_____.
c. If a lender ranks behind the firm's general creditors in the event of default, the loan is said to be _
d. In many cases a firm is obliged to make regular contributions to a(n) _________, which is then used to repurchase bonds.
e. Most bonds give the firm the right to repurchase or _________ the bonds at specified prices.
f. The benchmark interest rate that banks charge to their customers with good to excellent credit is generally termed the _ PRIMERATE ________.
g. The interest rate on bank loans is often tied to short-term interest rates. These loans are usually called _________ loans.
h. Where there is a(n) PRIVATE PLACEMENT___, securities are sold directly to a small group of institutional investors. These securities cannot be resold to individual investors. In the case of a(n)_________, debt can be freely bought and sold by individual investors.
i. A long-term rental agreement is called a(n) LEASE__.
j. A(n) _________ bond can be exchanged for shares of the issuing corporation.
k. A(n) CONVERTIBLE_ gives its owner the right to buy shares in the issuing company at a predetermined price.
I took at stab but need to understand the ones I am missing plus if the ones I completed are correct...Can you please help clarify? Thanks
The solution anwers and explains fill in the blanks questions by choosing the appropriate term from the following list: lease, funded, floating-rate, eurobond, convertible, subordinated, call, sinking fund, prime rate,private placement, public issue, senior, unfunded, eurodollar rate, warrant, debentures, term loan.