Chapter 2 (Pinches) “Financial Systems, Interest Rates
maturity, a point in the future when the full amount of principal and interest must be repaid. Bonds are considered a fairly safe investment choice because they pay a fixed rate of interest. All corporate bonds are issued with a stated face value, maturity date, and fixed interest rate. Earnings are computed at simple interest rates. For example, a $1,000, 5 percent, ten-year term bond would ... ................
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