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Hello sir john,
Wanted to understand floating and fixed interest rates in context with debt financing
But you do not say what you want to understand!!
Floating rates means that the interest rate applied changes from day to day.
Fixed rates means that the rate of interest is completely fixed, whatever happens in the future.
I do suggest that you watch our free lectures, because they are a complete course and cover everything needed to be able to pass the exam well.
I wanted to ask about secured loans basically , where if the charge is on specific assets its called fixed and all assets its called floating, because as I know in debt financing the returns are fixed regardless of profits of company so in what situations will it be floating?
Your original question asked about floating and fixed interest rates, which is not the same a floating or fixed security.
Floating and fixed interest rates are what I explained before. Not all debt finance is at fixed interest rates. Certainly traded debt (loan stock, debentures etc.) in the exam are at fixed coupon rates (although in practice they do not have to be). Long term loans can be either at fixed interest or floating interest.
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