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.
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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
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