Beruflich Dokumente
Kultur Dokumente
Debt
Amount of money that you owe to an individual, business or
government
3 Features of a debt
Principal (face value or maturity value)
Interest (annually, semi-annual)
Maturity date
Facts about debts
Paper or written contract that enables the issuing party to raise funds
by promising to repay a lender in accordance to the terms of the
contract
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Types of debt instruments
Short term debts
1 treasury bill
2 repurchase agreement
3 federal funds
4 - bankers acceptance
5 commercial paper
6 certificate of deposit
Types of debt instruments
Short term debts
Treasury Bills
Discounted securities issued by U.S. government to finance
operations
Repurchase Agreement
One firm sells financial asses to another firm with the promise to
repurchase the securities later at a higher price
Federal Funds
Overnight loans from one bank to another
Bankers Acceptance
A postdated check
Commercial Paper
A type of promissory note issued by large financially sound firms
Certificate of Deposit
BONDS
BOND
- long term
- Written contract
- Pay interest and principal
- at specific date or interval
Indenture and Trustee
Indenture
The specific contents of the indenture are the following: