The Federal Funds Rate is the interest rate at which banks and other depository institutions lend or borrow money to each other overnight on an uncollateralized basis...

Extinguishment of debt refers to the termination or cancellation of a debt obligation. This means that the borrower is no longer obligated to repay the debt, and the lender no longer has a claim on...

Secured debt refers to a type of debt that is backed by collateral, which serves as security for the loan. This means that the lender has a claim on a specific asset or group of...

Unsecured debt refers to a loan or debt that is not backed by collateral. Unlike secured debt, where the borrower provides collateral, such as property or assets, to secure the loan...

Accrued interest refers to the interest that accumulates on a debt instrument such as a bond, loan or savings account, over a specified period of time. It represents the growth in...

The Internal Revenue Service (IRS) is a U.S. government agency that is responsible for the collection of taxes and enforcement of tax laws. The IRS is part of the Department of the Treasury and...

The borrower (i.e. the company) promises to repay the lender (e.g. a bank) with interest over a set period of time. Unlike equity financing, where the lender receives ownership in the...

An unsecured loan is a loan that is not backed by collateral. This means that the lender does not have a claim to any specific assets of the borrower in the event of default...

Insolvency refers to the state of being unable to pay debts as they come due. It is a financial term that is often used to describe a company or individual that is facing financial...