Debt

Issuer

borrower, pay interest during loan term

US Government

treasury bills, short term borrowings (4yrs) interest is paid at maturity - excess / discount

Treasury Notes

2-10 yr borrowings, interest is paid semi annually

Treasury Bonds

long term borrowings, 30 yrs, semi annual interest

Mac/Mac

mortgage market for residential housing

Municipial Securities

local grants borrowing

General Obligation bonds

traditional financing method for capital asset project related to infrastructure, buildings, utility etc, not backed by collateral backed by minimized total tax

Revenue Bonds

like general obligation bonds/ funds projects repaid by income - not toal revenue

Special tax bonds

combination of general and revenue bonds - issue tax to repay bond holders

Authority bonds

these bonds issued enabled construction of an income producing facility (tolls — revenue pays interest)

Taxable bonds

fixed income issued to fund projects not subsidized by federal govt, do not support public

municipal notes

short term debt securities

Corporate bonds

hard and company pays interest

0 coupon bonds

don’t pay any interest rather pays below and and full value - interest - built in

convertible bonds

repay with common stock rather than cash

money market instruments

short termed fixed income debt instruments

CDs

saving accounts with fixed interest can’t withdraw funds early

Bankers Acceptances

trade on secondary market prices to maturity, social discount

Commercial Papers

promissory note- AKA monopoly money = iou

Par value

initial loan amount - face value

interest

coupon rate - nominal yield

current yield

expected annual rate of return

Yield to maturity

book rield/redemption yield, annual expected yield of the bond

yield to call

overall yield

callable

able to pay off bonds early

puttable

redeem principle amount on/after specific dates

Bond party agencies

evaluate credit risk

priority in liquidation

priority payments - senior debt

money in interest

as interest rates rise, bond price falls

Competition

advertise bonds are for sale with moti—, place bets

Negotiated

issuers allowed to select negotiators