A contract negotiated directly with a bank in which the borrower agrees to make a series of interest and principal payments on specific dates to the bank is called

Question

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A contract in which the borrower agrees to make a series of interest and principal payments on specific dates to a bank is called a term loan. Commercial paper is a short-term debt instrument issued by companies, convertible debt allows the holder to convert the debt into equity, preferred stock is a type of equity security, and a bond issue is a long-term debt instrument sold to investors.

A Contract Negotiated Directly with a Bank in Which the Borrower