Sources of debt financing are classified according to their:
A)Maturities
B)Interest paid
C)Par
D)Yield

Question

Quizplus · Accepted Answer

Sources of debt financing are classified according to their maturities, which can be short-term or long-term. Short-term debt financing includes trade credit, bank loans, and commercial paper. Long-term debt financing includes bonds and bank loans with maturities exceeding one year. Interest paid, par, and yield are not the main ways to classify sources of debt financing.

Sources of Debt Financing Are Classified According to Their