Explain the vital role of government notes and bonds in the finance national debt.

Government notes and bonds are issued within the USA by the US Treasury to finance national debt. In notes each of original maturity of one to ten years, when bonds have an original maturity of ten to twenty years maintained. Government notes and bonds are usually seen to be free of default risk (risk which the issuer of the bond will default, which is, being incapable to make interest payments and principal repayment. Actually, the issuer (the government) can all the time print money to pay off the debt when essential. Like a result, they pay lower interest rates than corporate bonds. These bonds are termed as gilts in the UK, Treasuries into the USA and Bunds into Germany.

Posted Date: 9/5/2013 6:03:52 AM | Location : United States

Ask an Expert

Related Discussions:- Role of government notes and bonds in finance national debt, Assignment Help, Ask Question on Role of government notes and bonds in finance national debt, Get Answer, Expert's Help, Role of government notes and bonds in finance national debt Discussions

Write discussion on Role of government notes and bonds in finance national debt
Your posts are moderated

Write your message here..

Related Questions

What is the operating leverage effect and what causes it, What is the opera... What is the operating leverage effect and what causes it?  What are the potential benefits and negative consequences of high operating leverage? The operating leverage effect i

Explain the checklists -documenting the accounting system, Checklists or qu... Checklists or questionnaires Audit firm will have a standard list of control questions. Audit staff can quickly ascertain which if any, are in operation by the client. There

What is an annuity?, What is an annuity? An annuity is a sequence of e... What is an annuity? An annuity is a sequence of equal cash flows, spaced consistently over time.

What is the value of the security to an investor, What is the Value of the ... What is the Value of the security to an investor Value of the security to an investor is directly proportional to the return that he is expected to get from that security. Hig

Determine the change in profit, (a) The BEQ is 200 customers per month, i.e... (a) The BEQ is 200 customers per month, i.e. $3,000 / ($20 - $5) (b) The margin of safety is 300 customers, i.e. 500 - 200 (c) Graph (d) New break-even is 334 customers, i

Out of cash, Out of Cash Calculated by taking organization cash on hand... Out of Cash Calculated by taking organization cash on hand divided by its burn rate, yielding the time period that the organization will have enough cash to cover what it wants

Treasury bills or t-bills, Treasury bills are the bills, the governme... Treasury bills are the bills, the government issues with maturity period of one year or less than one year. Treasury bills are usually issued as discount securiti

Irr, #question how to collect real irr %.. #question how to collect real irr %..

A company has total debt , A company has total debt of $1,200 and a debt-eq... A company has total debt of $1,200 and a debt-equity ratio of 0.5. What will be  the value of the total assets?

Estimate financing types and requirements, This case provides the opportuni... This case provides the opportunity to match financing alternatives with the needs of different companies. It allows the reader to demonstrate a familiarity with different types