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Because these bonds are considered a very low risk dependable investment.

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9y ago

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The price of a bond is equal to the sum of the interest payments and the face amount of the bonds?

This is how you make money on the bonds. You will put in the money and will receive that money and the interest on it at the end of the term.


When you put your money in a fund and the investment company combines that money with the money of millions of other investors and buys stocks and bonds with it?

this is a mutual fund


What are oil bonds?

Government owned oil companies in India suffer losses as the prices of petroleum products are administered by the government. Even when the oil prices increase the government is not in a position to rise the prices automatically due to fear of loss of popularity. So the government issued oil bonds to cover the losses or to put it simply the loss was covered by the government without paying a single rupee from its funds. The oil companies can raise loans against the bonds but can they cash the same is a moot question.


What does a personal guarantee look like?

A personal guarantee is a signature promise that money loaned to a company will be repaid. The owners or partners of a corporation sign documents, and put there personal finances on the line, with the guarantee that all money loaned to the company will be paid back. If money is not repaid, lenders have the ability to request repayment from the individuals who guaranteed payment.


Who are lenders and borrowers?

Lenders are the banks and finance companies who contract loans for the purchase of vehicles, homes, and other property. Borrowers are those who contract for the loans so they may purchase vehicles, homes, and other property. Although you did not ask, dealerships and realtors are those who act as the agents of the lenders to put borrowers in debt.

Related Questions

Where will the US get the money for the stimulus package?

Unless new or increased taxes are put into law, the money will have to be borrowed by issuing government bonds.


What are commercial lenders?

Commercial lenders are usually store front money lenders. Some of them are large enough to where they can advertise on television, put up a website and operate in any state they can obtain a license from.


The price of a bond is equal to the sum of the interest payments and the face amount of the bonds?

This is how you make money on the bonds. You will put in the money and will receive that money and the interest on it at the end of the term.


How does the Fed expand the money supply?

The Federal Reserve expands the monetary supply by buying government bonds and lowering interest rates. This allows for more money to be put into circulation, making it available for banks and consumers.


When you put your money in a fund and the investment company combines that money with the money of millions of other investors and buys stocks and bonds with it?

this is a mutual fund


What respected website can provide a list of bad credit lenders?

Bad credit lenders are a bit difficult to find right now with the current economic situation. You can try websites like, www.badcreditloanservices.com, but just be careful and do not put out any money.


High-Grade Municipal Bonds or Mutual Funds?

It's when you take all of your money and put in in the microwave so the grain of the money is really rough


Are put bonds good?

Put bonds are a symptom that something is really wrong with the company. There are two reasons you might consider issuing put bonds--ones where you promise to buy the bonds back on certain dates if the purchaser demands it. One is that you can't get anyone to take your bonds otherwise. The other is where you want to ward off a hostile takeover. You issue a pile of put bonds. The acquirer will know that if he consummates the takeover, when the next date the bonds can be put back occurs a lot of people are going to be at your door demanding their money. This technique is known as a Jonestown defense--because if the acquirer decides to abandon the takeover after seeing the mass of put bonds you sold, and all your bondholders put back their bonds after the hostile takeover falls through, you will probably go bankrupt.


Why did people sell there war bonds during the American revolution?

War bonds were a very simple method for the government to make money. At the time, most of the wages Americans were getting were from making the things the government was spending money on, so they encouraged civilians to put that money back into the war effort.


How does the government decide how much money to put into circulation?

Obama decides. And look where our economy is!


What are oil bonds?

Government owned oil companies in India suffer losses as the prices of petroleum products are administered by the government. Even when the oil prices increase the government is not in a position to rise the prices automatically due to fear of loss of popularity. So the government issued oil bonds to cover the losses or to put it simply the loss was covered by the government without paying a single rupee from its funds. The oil companies can raise loans against the bonds but can they cash the same is a moot question.


What contributed to the fall in the value of Roman money?

The government put less silver in each coin.