Non-amortized debt requires:

Question

Quizplus · Accepted Answer

Non-amortized debt refers to a loan in which the borrower only makes interest payments during the life of the loan and does not repay any principal until the maturity date. Therefore, option A is incorrect as it implies that both interest and principal need to be paid annually. Option B is also incorrect as it suggests that principal needs to be repaid annually, which is not the case for non-amortized debt. Option C is the correct answer as it correctly states that interest needs to be paid regularly (usually monthly or quarterly) and principal repaid at maturity. Option D is incorrect as Option C is the correct answer.

Non-Amortized Debt Requires