How do I calculate the subordinated debt?
When calculating Subordinated debt, it is important to understand that it is unsecured debt and also known as junior securities. To calculate Subordinated debt, you can use a formula such as
Debt + Interest Rate/ Time Period = Subordinated Debt. For example, if the debt amount is $10,000, the interest rate is 5%, and the time period is 10 years, the Subordinated Debt would be:
$10,000 + 5%/ 10 years = $15,000. Tools such as Sourcetable can be used to help calculate Subordinated Debt more accurately.
What is subordinated debt?
Subordinated debt is unsecured debt, also known as a subordinated debenture, that is issued by many organizations.
What kind of organizations issue subordinated debt?
Subordinated debt is issued by many organizations, including banks, insurance companies, and governments.