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B - Economypedia
Ballon Interest refer to a higher interest that is paid on the longer maturity bonds of a serial bond issue. In other words, a balloon interest refers to paying a higher coupon rate on financial instruments gradually mature at regular intervals until the whole issue matures.
The coupon rate of such bonds is inflated because it is gradually rises over the life of the bond issue, and hence the term balloon.
The Advantage of the balloon interest
Balloon interest allow bondholders to hold onto debtlonger by reduce that fixed payment amount in exchange for making a larger payment at the end of the loan’s term.
Bookkeeping is the process of recording your company’s financial transactions into organized accounts on a daily basis. It can also refer to the different recording techniques businesses can use.Â
Maintaining and balancing ledgers, accounts, and subsidiaries
Importance of Bookkeeping
Proper bookkeeping gives companies a reliable measure of their performance. It also provides information to make general strategic decisions and a benchmark for its revenue and income goals. In short, once a business is up and running, spending extra time and money on maintaining proper records is critical.
