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Financial Terms related to Debt
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available at www.
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glossary with more than five thousand financial
and business terms.
This document...
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Findthousandsoffinancialtermsatwww.
ftpall.
com
Financial Terms related to Debt
This document is part of the valuable contents
available at www.
ftpall.
com, a free online
glossary with more than five thousand financial
and business terms.
This document can be copied and distributed freely
respecting its original format.
It is forbidden its
transcription, translation or change on its format
without authorization of its author or editor.
DEBT
Ability to service debts
• The ability of a firm to make the contractual payments required on a scheduled
basis over the life of a debt.
Cost of debt
• Denotes the interest rate paid to bondholders.
In the context of valuing firms, if the
capital is debt, the cost of capital is called the cost of debt (synonymous with "yield").
Cost of long term debt
• The after tax cost today of raising long-term funds through borrowing.
Debt
• Refers to a relationship which obligates a borrower to pay interest and principal.
The terms are often in writing
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