If a long-term debt instrument is perpetual,it is called a(n):
A) secured debt issue.
B) subordinated debt issue.
C) consol.
D) capital debt issue.
E) indenturE.

Name: If a long-term debt instrument is perpetual,it is called a(n): A) secured debt issue. B) subordinated debt issue. C) consol. D) capital debt issue. E) indenturE.
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Question

Quizplus · Accepted Answer

A perpetual debt instrument is known as a consol. It has no maturity date and pays interest indefinitely. The other options do not apply to a perpetual debt instrument.

If a Long-Term Debt Instrument Is Perpetual,it Is Called A(n)