Which of these is the type of loan where the firm makes fixed interest payments over the life of the loan?
A) fixed-rate loans
B) variable-rate loans
C) take-down loans
D) spot loans

Question

Quizplus · Accepted Answer

Fixed-rate loans have a predetermined interest rate that does not change over the life of the loan. This means that the firm makes fixed interest payments at regular intervals, such as monthly or quarterly, until the loan is paid off. Variable-rate loans, on the other hand, have an interest rate that fluctuates based on market conditions, making it difficult for firms to predict their interest expenses. Take-down loans and spot loans refer to specific types of financing arrangements but do not necessarily have fixed interest payments.

Which of These Is the Type of Loan Where the Firm