Yanuar Dananjaya, Bsc.

, MM

4 Types of Debt
Simple loan
Interest Rate on Valuation

Lend some amount of money, must be repaid in future

date with interest
Only 1 payment, in maturity date
Ex: lend Rp. 100 mill for 3 years for Rp. 120 mill
Usually for commercial loan

Fixed-payment loan
Lend some amount of money, must be paid
periodically with a same amount of money
Payment periodically until end of period
Ex: lend Rp 500 mill, pay Rp 4 mill every month for 15
years
Usually for credit card, mortgage, auto loan

Yanuar Dananjaya, Bsc., MM

4 Types of Debt (cont)

Coupon bond
Interest Rate on Valuation

Lend some amount of money, interest is paid

periodically, pay the face value at maturity
Interest paid every period, face value at maturity
Ex: lend Rp. 100 mill for 10 years with coupon rate
10%/year
Usually for bond

Discount bond/zero coupon bond

Lend some amount of money, paid at maturity with
higher amount of money
Ex: Discount bond wit face value Rp 10 mill maturity 1
year is sold Rp 9 mill