The different tranches of term debt
A)have different repayment schedules and different maturity dates.
B)have different repayment schedules but the same maturity date.
C)all offer the same promised interest rate.
D)Both B and C are true statements.

Question

Quizplus · Accepted Answer

Tranches of term debt typically have different repayment schedules and maturity dates, allowing for increased flexibility for the borrower and different risk profiles for investors. Additionally, tranches may have different interest rates based on the perceived risk of each tranche. Therefore, choices B and C are not accurate statements. Tranches of term debt refer to different layers or levels of debt in a capital structure. These tranches can be differentiated based on factors such as repayment schedule, maturity date, and interest rates. Therefore, option A is the correct answer as tranches of term debt can have different repayment schedules and different maturity dates.

The Different Tranches of Term Debt