Which of the following usually does not represent a variable interest?
A)Common stock,with no special features or provisions
B)Senior debt
C)Subordinated debt
D)Loan or asset guarantees

Question

Quizplus · Accepted Answer

Senior debt typically represents a fixed interest obligation rather than a variable interest. Variable interest is more commonly associated with equity investments or subordinate debt, where returns can fluctuate based on the performance of the underlying asset or business. Senior debt, on the other hand, usually involves a predetermined interest rate and repayment schedule.

Which of the Following Usually Does Not Represent a Variable