redeemable debt is also called as____
a) perpetual loan
b) terminable loan
c) flexible loan
d) rigid loan
Answers
Answered by
2
Answer:
A redeemable debt, or callable debt, is a bond that a borrower can repay prior to its maturity. The borrower usually pays a premium, or fee, to the bondholder when a debt is redeemed.
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Answer:
c) Flexible loan is redeemable debt.
Explanation:
What is debt:
- A debt is a loan that a corporation must repay at some point in the future.
- Short-term debts, such as accounts payable, and long-term liabilities, such as bonds payable, are two examples.
What is redeemable debt:
- A redeemable debt, also known as a callable debt, is a bond that can be repaid before its maturity date.
- When a debt is redeemed, the borrower normally pays a premium, or charge, to the bondholder.
- Redeemable debt solutions assist businesses in lowering operational funding expenses.
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