Question

In: Finance

which of the following debt repayment profiles involves a growing principal amount over time a)pay in...

which of the following debt repayment profiles involves a growing principal amount over time

a)pay in kind of debt

b)equity

c)mezzaine fiance

d)senior debt

Solutions

Expert Solution

Pay in kind debt involves paying the present outstanding balance with new payment but not in cash. As such the principal keeps growing over period of time. In other words, during the initial period, the debt pays interest in additonal bonds rather than cash.

Answer is a) Pay in kind debt

jeff jeffy answered 2 years ago
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