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

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A term loan is a type of debt financing where the borrower agrees to make a series of interest and principal payments on specific dates directly to the bank or lender that negotiated the contract. This type of loan typically has a fixed interest rate and a set repayment schedule. Commercial paper (B) refers to unsecured short-term debt issued by corporations, while preferred stock (A) and convertible debt (C) are types of securities that represent an ownership interest in a company or the right to convert debt into equity, respectively. A bond issue (E) is a type of long-term debt that is typically sold to investors through an underwriting process.

A Contract That Is Negotiated Directly with a Bank and Under