A type of long-term loan granted to companies with fixed interest rate as well as with redeemable and irredeemable features is referred to as projects.

Assessment: JAMB UTME - Commerce - 2015 Subject: Commerce

Question 1 Report

A type of long-term loan granted to companies with fixed interest rate as well as with redeemable and irredeemable features is referred to as projects.
Answer Details
A type of long-term loan granted to companies with a fixed interest rate, redeemable and irredeemable features is referred to as a "debenture." A debenture is a type of debt security, similar to a bond, that is issued by a company to raise capital. The company promises to pay a fixed rate of interest to the holders of the debenture, and the loan is typically repayable after a specified period of time. The difference between a debenture and a bond is that a debenture is not backed by any specific assets of the company, while a bond is backed by specific assets. An overdraft is a type of short-term loan, while a term loan is a type of loan that is repayable in installments over a specified period of time.

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