Ask Question
BusinessBusiness
16 October, 05:00

True or False: In general, term loans incur lower issuance costs than bond issues because (1) they require less formal documentation than bond issues, and (2) they are not registered with the Securities and Exchange Commission (SEC).

+2
Answers (1)
  1. 16 October, 05:25
    0
    Answer:TRUE

    Explanation: Term loans are privately negotiated between the borrower and the lender, term loans generally does not require documentation with the Security and exchange commission (SEC).

    Bonds is a kind of loan given to a corporate or Government, it has a fixed interest rate, Bonds require adequate documentation and are not privately negotiated which makes the issuance cost to be higher when compared to the term loans and Bonds are securities which must be filed and documented with the securities and exchange commission (SEC).
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “True or False: In general, term loans incur lower issuance costs than bond issues because (1) they require less formal documentation than ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Fowler credit bank is offering 6.5 percent compounded daily on its savings accounts. you deposit $4,900 today. how much will you have in the account in 5 years?
Answers (2)
A deadweight loss is a consequence of a tax on a good because the tax a. induces the government to increase its expenditures. b. induces buyers to consume less, and sellers to produce less. c. increases the equilibrium price in the market. d.
Answers (1)
The other day, you had to remember some items for an important exam. you are sure you studied them and knew them before you entered the classroom. however, you drew a blank when you took the test.
Answers (1)
Investing in the same tqm initiative round after round will create
Answers (1)
To calculate the marginal utility of consuming the Nth product: a. divide total satisfaction from consuming all N products by N. b.
Answers (1)
New Questions in Business
On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June 30.
Answers (2)
You invest $50,000 now and receive $10,000 per year for 15 years starting at the end of the first year.
Answers (1)
A high school currently require students to purchase a parking pass in order to park in the parking lot, but for the coming year they are considering letting all students park for free.
Answers (2)
An oligopolistic market structure is distinguished by several characteristics, one of which is a difficult entry. Which of the following are other characteristics of this market structure? Check all that apply. a. Market control by many small firms.
Answers (1)
Who should you' alert that you are interviewing for jobs? A. Your references B. Other possible employers C. Your classmates D. Your present employer
Answers (1)
Home » Business » True or False: In general, term loans incur lower issuance costs than bond issues because (1) they require less formal documentation than bond issues, and (2) they are not registered with the Securities and Exchange Commission (SEC).
Sign Up Forgot Password?