Mezzinzi Bank offers loans to companies in the form of bonds. The companies who apply for these loans can repay the amount over a prolonged period of time. Which of the following financing options is being offered by Mezzinzi Bank in the given scenario?
A. A revolving credit agreement
B. Long-term debt
C. Commercial Paper
D. Trade credit

Respuesta :

Option B

Long term debt financing options is being offered by Mezzinzi Bank in the given scenario

Explanation:

Long-term debt usually transfers to a company's loans and other responsibilities that will not fit due within one year of the balance sheet period. Investors spend in long-term debt for the advantages of interest payments and estimate time to maturity as a liquidity peril.

Bonds are commonly distributed to the general public and obligatory beyond several years. The term to maturity for LTD can change wherever from 12 months to 30+ years and the kinds of debt can carry bonds, contracts, bank loans, debentures, etc.