Which of the following is true of senior debt?
A)The rate on senior debt is 2% to 3% above prime
B)Senior debt is usually about a quarter to a third of total LBO debt
C)The term is usually 5 to 10 years
D)All of the above

Question

Quizplus · Accepted Answer

All three options are true of senior debt. The rate on senior debt is typically 2% to 3% above prime, it usually represents about a quarter to a third of total LBO debt, and the term of senior debt is typically 5 to 10 years.

Which of the Following Is True of Senior Debt