debt

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Related to Cost of debt: Cost of equity

Debt

Money borrowed.

Debt

Any money owed to an individual, company, or other organization. One acquires debt when one borrows money. Generally speaking, one acquires debt for a specific purpose, such as funding a college education or purchasing a house. In business and government, debt is often issued in the form of bonds, which are tradeable securities entitling the bearer to repayment at the appropriate time(s). Occasionally, especially for personal loans, debt is issued without interest or other compensation; one simply pays back what was lent. This is exceedingly rare in business and a debtor almost always compensates a creditor with a certain amount of interest, representing the time value of money. However, some areas of finance, especially Islamic banking, do not allow debt with interest.

debt

See liability.

Debt.

A debt is an obligation to repay an amount you owe. Debt securities, such as bonds or commercial paper, are forms of debt that bind the issuer, such as a corporation, bank, or government, to repay the security holder. Debts are also known as liabilities.

debt

an amount of money owed by one person, company, etc. to another. Debts result from borrowing money to purchase a product, service or financial asset (e.g. INSTALMENT CREDIT). Debt contracts provide for the eventual repayment of the sum borrowed and include INTEREST charges for the duration of the LOAN. See DEBTORS. BORROWER.

debt

an amount of money owed by a person, firm or government (the borrower) to a lender. Debts arise when individuals, etc., spend more than their current income or when they deliberately plan to borrow money to purchase specific goods, services or ASSETS (houses, financial securities, etc.). Debt contracts provide for the eventual repayment of the sum borrowed and include INTEREST charges for the duration of the loan. An individual's debt can include MORTGAGES, INSTALMENT CREDIT, BANK LOANS and OVERDRAFTS; a firm's debt can include fixed-interest DEBENTURES, LOANS, BILLS OF EXCHANGE and bank loans and overdrafts; a government's ebt can take the form of long-term BONDS and short-term TREASURY BILLS (see NATIONAL DEBT). See PUBLIC SECTOR BORROWING REQUIREMENT.

See also INTERNATIONAL DEBT.

debt

An obligation to pay another.

References in periodicals archive ?
In order to test these relations a regression model in which the cost of debt is a function of conditional conservatism, the size of the company and the ratio of expenses coverage is used.
In order to test these relations a regression model in which the cost of debt is a function of unconditional conservatism, financial lever and the beta coefficient is used.
In order to test the first hypothesis, a regression model in which the cost of debt is a function of conditional conservatism, the ratio of financial expenses cover and the size of the companies is used.
000, which issue indicates a negative and significant relation between the ratio of financial expenses cover with the cost of debt.
2004) and an association between debt covenants and the cost of debt (Beatty et al.
Section 2 develops the hypotheses and presents the empirical models used to investigate the relation between monitoring, debt covenants, and the cost of debt.
The first two hypotheses consider the association among the three most important components of debt contracts: monitoring, debt covenants, and the cost of debt.
2002) suggests that the cost of debt and debt covenants could be substitutes, I hypothesize that there is also a substitution effect between monitoring and the cost of debt.
It also calculates the current cost of debt service and recommends the best capitalization rate range that responds to the recommended positive spread based on up-to-date nationwide data.
ACS further intends to enter into an interest rate swap agreement to fix the interest rate on the initial incremental term loan and estimates that this series of transactions will reduce its current weighted average cost of debt and reduce ACSH's cash interest expense.