Home > Blossary: Long Term Debt
Long term debt is basically a loan that last for more than a year. It is a liability that a company or an individual holds which matures, or has to be paid back in not less than a year. Long term debt does come with interest payments, which is the cost of borrowing for the one who takes the debt, and a reward for the one that loans out the amount.

Category: Education

15 Terms

Created by: SingleWriter

Number of Blossarys: 3

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Bond rating indicates the probability of a default risk that is attached to the bond. Companies are usually ready to pay for a good rating since bond rating is what attracts investors.

Domain: Financial services; Category: Finance

Bond refunding is when a company replaces a bond entirely or partially. Refunded bonds usually have a really good rating some cash is kept aside for safety by the issuer of bond.

Domain: Financial services; Category: Finance

A bond, also referred to as corporate debt can be short term or long term. It is different from common stock since a bond holder has no ownership in a company. Moreover, bonds can also be callable in ...

Domain: Financial services; Category: Finance

This is a feature in a bond that allows the company to buy back the bond at a price that is decided. The period for using this provision is restricted though.

Domain: Financial services; Category: Finance

These bonds come with a floating rate of coupon payments, which means that coupon payments may vary based on the market fluctuations until the maturity. Floors and ceilings are often used to protect ...

Domain: Financial services; Category: Finance

Indenture basically lists the features of a bond. It consists of the par value of the bond, amount and date of issue, and maturity of the bond. It also has details regarding coupon payments and other ...

Domain: Financial services; Category: Finance

These are bonds that have a rating that is less than BB. These bonds do come with a high yield but also have a high default risk attached to them.

Domain: Financial services; Category: Finance

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