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Illustrate the zero bonds security instruments.
Zero coupon bonds are instruments under that a borrower promises, at the recent time, to pay one exact nominal sum (face value) to the lender at one exact future date. Into return, at the recent date the borrower obtains the bond price. Zeros are also termed as discount bonds. Obviously, with positive interest rates, there the price of a zero coupon bond should be lower than the face value.
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What is the meaning of Financing decision Financing decision of a firm relates to choice of the proportion of these sources to finance investment requirements.
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Generally, an interest rate or an interest rate index is used as a reference rate for However, through financial engineering, issuers have been able to construct
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