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Why do treasury bonds carry a lower interest rate than those other issuers such as corporations and municipalities?
Wiki User
∙ 13y ago
Because Treasuries are backed by the U.S. govt, and by extension the U.S. economy and society as a whole. This is perceived as safer than individual corporate bonds, and therefore the yields don't need to be as high.
Wiki User
∙ 13y ago
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What is a bond in terms of financial markets?
Bonds are loans that investors make to governments, corporations, municipalities, or other issuers. While equities represent ownership in a company, bonds represent an obligation or debt of the issuer. http://en.wikipedia.org/wiki/Bond_%28finance%29
What is difference between commercial paper and treasury bill?
Commercial paper is the most prevalent form of security in the money market, issued at a discount, with a yield slightly higher than Treasury bills. The main issuers of commercial paper are finance companies and banks, but also include corporations with strong credit, and even foreign corporations and sovereign issuers. The main buyers of commercial paper are mutual funds, banks, insurance companies, and pension funds. Because commercial paper is usually sold in round lots of $100,000, very few retail investors buy paper.
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What is call deposit receipt?
A Call Deposit Receipt is a certificate issued to government institutions and corporations as a type of security deposit. The institution or corporations it is issued to can redeem it at any time for legal tender from the issuers account.
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the risk that issuers may call back, or retire, the bonds. Such bonds may be retired when interest rates are declining.
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Network Interchange Fees - PIN-based ATM/POS fees paid by card issuers to ATM owners and merchant acquirers to card issuers. Signature-Based Debit Interchange Income - Merchant fees paid to card issuers based on a percentage of the sale price Network Interchange Fees - PIN-based ATM/POS fees paid by card issuers to ATM owners and merchant acquirers to card issuers. Signature-Based Debit Interchange Income - Merchant fees paid to card issuers based on a percentage of the sale price
What is interchange income?
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How many municipal bond issuers are there in the US?
According to an article by Jeff Benjamin in Investment News (06Jan2011), there are over 60,000 state and local issuers.
Does a credit card issuer have to pay the card holder interest on an account that has a positive credit amount?
The consumer will earn interest on the account, but may be "rewarded" with cash rebates (usually quite small) and other such perks. Credit card issuers to not have to pay card holders interest on such accounts, it would be contrary to the purpose of issuing credit in the first place.
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Compare Credit Cards: Once you have zeroed in on some card issuers, it's the time to compare them. Interest rates, interest free period, annual and monthly fees are amongst the things you should check out, before you make up your mind for a particular credit card.
What is a person who acts as a go between for stock buyers and stock issuers?
Broker
