6 - WGU C214 Financial Management - Debt Valuation and Interest Rates - 9pts Question and answers verified to pass 2025/2026

6 - WGU C214 Financial Management -
Debt Valuation and Interest Rates -
9pts Question and answers verified to
pass 2025/2026
Secured Loan - correct answer ✔some type of asset is being used as collateral



Unsercure Loan - correct answer ✔not backed by a specific asset



Bond - correct answer ✔primary means of money borrowed in the corporate world; it is a debt
agreement w/investors & savers that obligates the corporation to make certain payments- a fixed
income sercurity; stream of annual/semi-annual interest payments and a final principle w/interest
payment



Fixed- income securities - correct answer ✔pay a fixed interest rate each year



Par value - correct answer ✔face value: the sum of money that the corporation promises to pay at the
bond's expiration



Coupon Rate - correct answer ✔coupon yield; the interest rate of the bond



Maturity - correct answer ✔bonds are finite-term securities; issued/start date and expiration/maturity
date



Covenats - correct answer ✔outline things the company is obligating itself to do or not to do in order to
protect bondholders