The amount by which debt obligations exceed the present value of the payments that will be made to service the debts is called:
A)sovereign debt.
B)debt swap.
C)debt overhang.
D)debt restructuring.

Question

Quizplus · Accepted Answer

Debt overhang refers to a situation where the amount of debt owed by a country or company is greater than the present value of the payments it can reasonably make. This can lead to negative consequences such as inability to invest, lower economic growth, and the need for debt restructuring or forgiveness.

The Amount by Which Debt Obligations Exceed the Present Value