Types of rating - debt rating, Financial Management

Assignment Help:

Based on the period involved in repayment of the debt obligations, the debt instruments could be classified into long-/medium-/short-term debt instruments.

  1. Long-term Debt Instruments: Debt obligations for a period over three years are known as long-term debt instruments. They are Debentures/Bonds and Preference shares.

  2. Medium-term Debt Instruments: Medium-term obligations range for a period between 1-3 years. The method of raising such funds will either be a debt issue or through the "Fixed Deposit" program of the companies.

  3. Short-term Debt Instruments: Debt obligations for a short period payable within one year or less than one year are covered under money market instruments. They are Commercial Papers and Certificates of Deposits.


Related Discussions:- Types of rating - debt rating

Term money, Short-term funds having a maturity of 15 days and over ar...

Short-term funds having a maturity of 15 days and over are categorized as term money. Banks access this term money route to bring greater stability in their short

What is capital budgeting, What is Capital Budgeting Capital Budgeting...

What is Capital Budgeting Capital Budgeting is probably the most financial decision for a firm. It relates to selection of an asset or investment proposal or course of action

Operating cycle , using the operating cycle and any other financial managem...

using the operating cycle and any other financial management knowledge,discuss the applicabilty of such cycle to poultry

Yield to worst, Now we can calculate the yield for each possible call...

Now we can calculate the yield for each possible call or put date. In addition, we can also calculate the yield to maturity. The lowest yield of all these possibl

Types of financial incentive schemes, Types of financial incentive schemes ...

Types of financial incentive schemes Performance associated pay (PRP) systems e.g. piecework or sales commission Bonuses e.g. supplementary payments for targets or ai

Discuss how a firm can maintain adequate working capital, Question 1 An...

Question 1 Analyse the financial requirements of a FMCG company 2 If you are an investor and are interested in finding out the value of an amount of Rs 10,000 to be received

Define how fx futures market be used for price discovery, How can the FX fu...

How can the FX futures market be used for price discovery? Answer:  To the amount that FX forward prices are an unbiased predictor of future spot exchange rates, the market antic

Tests for consistency, Tests for Consistency The consistency of the ind...

Tests for Consistency The consistency of the index numbers have been tested over the years. The most important of these tests are: The time reversal test The

Define the term in brief -called-up share capital, Define the term in brief...

Define the term in brief -Called-up share capital Called-up share capital that you may find in some of balance sheets. It refers to that part of subscribed capital, which share

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd