What are the two main types of long-term debt instruments?
Understand the Problem
The question is asking for the identification of the two main types of long-term debt instruments, providing multiple-choice options.
Answer
Mortgages and bonds.
The two main types of long-term debt instruments are mortgages and bonds.
Answer for screen readers
The two main types of long-term debt instruments are mortgages and bonds.
More Information
Mortgages are backed by real estate, whereas bonds are publicly tradable securities. Both serve as means for corporations or individuals to secure long-term funding but have different usage and characteristics in terms of security, tradability, and risk profiles.
Sources
- Types of Long Term Debt - Corporate Finance Institute - corporatefinanceinstitute.com
- Long-Term Debt - Study.com - study.com
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