Debt service parity approach

Definition:

Payment alternatives that provide the firm with the exact same schedule of after-tax debt payments (including both interest and principal).

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Historical Cost Accounting Convention

An accounting technique that values an asset for balance sheet purposes at the price paid for the asset at the time of its acquisition.

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