Bonds And Other Financial Instruments
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Financial Instruments
-certificates of deposit -money market mutual funds
Types of Bonds
-corporate bonds -treasury bonds -municipal bonds
MMMF
money market mutual funds
Par Value
the amount a bond issuer must pay the buyer at maturity
Yield
the annual rate of return on a bond
Maturity
the date when a bond is due to be repaid
Coupon Rate
the interest rate a bond holder receives every year until maturity
CD
certificate of deposit
Junk Bond
high-risk, high-yield corporate bonds
