debt

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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.
Researchers have used these and also other proxies of agency cost of debt.
where d is the market cost of debt, e is the return to equity, %D is the market value of debt as a percent of the total value and %E is the market value of equity as a percent of the total value.
2004) and an association between debt covenants and the cost of debt (Beatty et al.
In this case the interest payment is calculated using the contractual cost of debt ([Kd.
REIT Group Head for Fitch Ratings noted, 'Most REITs have staggered debt maturity schedules, which indicates that increases in the total cost of debt would typically have an impact on REITs' coverage ratios over a protracted timeframe.
NetGain Co-founder Allen Cymrot says, "As any seasoned investor knows, the two major driving forces behind real estate values are the national employment state of the economy and the cost of debt service.
Under this SWAP TEAC will pay index and receive a fixed price (plus an associated discount) that will match the cost of debt service (plus the associated discount).
The primary purpose of the exchange offer is to reduce the Company's cost of debt service and to adjust the Company's debt maturity structure to limit the aggregate amount of debt maturing in any one year to approximately $100 million.
The new credit facility, the cost of which is indexed to LIBOR, has allowed us to reduce our blended cost of debt to approximately 8.
The change in Moody's ratings has no impact on the cost of debt under the Company's existing credit facility, which has $17 million drawn upon it, and does not trigger any defaults under the Company's credit agreements with its lenders.
Fitch expects that Braskem management will maintain a debt profile that in terms of maturities and cost of debt, will allow the company to satisfactorily operate through the peaks and troughs of the petrochemical industry cycle.