| |
Chapter 11: Long-term Debt Finance
Learning objectives
|
An understanding of the key characteristics of the main categories of debt finance is essential to anyone considering the financing decisions of the firm. After working through this chapter you will be able to:
- explain the nature and the main types of bonds, their pricing and their valuation;
- describe the main considerations for a firm when borrowing from banks;
- give a considered view of the role of mezzanine and junk bond financing as well as convertible bonds, sale and leaseback, securitisation and project finance;
- demonstrate an understanding of the value of the international debt markets;
- explain the term structure of interest rates and the reasons for its existence.
|
