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

Firms operation and financing decision, Q. Firms operation and financing de... Q. Firms operation and financing decision? Firms operation and financing decision risks or the variability of returns also results for the decision make within the company. Ris

How much more return is appropriate for common stock, Given that risk-avers... Given that risk-averse investors demand more return for taking on more risk when they invest, how much more return is appropriate for, say, a share of common stock, than is appropr

Explain term lenders, Lenders Lenders are concerned to receive payment ... Lenders Lenders are concerned to receive payment of interest and ultimate re-payment of capital. They don't share in the upside of very successful organisational strategies as

Operating cycle, discuss the applicability of operating cycle and any other... discuss the applicability of operating cycle and any other financial knowledge to poultry business in uganda

Corporate bonds, Corporate bonds are debt securities issued by privat... Corporate bonds are debt securities issued by private and public corporations. These bonds are issued to meet specific requirements like building a new plant, pur

Explain takeovers obligation, Takeover, Inc. is a Delaware corporation whos... Takeover, Inc. is a Delaware corporation whose only stated purpose is to acquire companies.  It has virtually no assets and no employees other than the original founders who contri

Components of working capital, Examine the components of working capital & ... Examine the components of working capital & also explain the concepts of working capital.

Discounting technique for calculating time value of money, DISCOUNTING TECH... DISCOUNTING TECHNIQUE is also called present value technique. It is the process of calculating the present value of cash flows.  Discounting is determining the present value of a

Show the marketing issues, a) Cultural exports are the commercial transfer ... a) Cultural exports are the commercial transfer of values and ideas from one country to another. Canned crab meat is a popular local fragility in Thailand and Viya Crab Products Co

Capital budgeting.., Assignment II Describe capital budgeting techniques wi... Assignment II Describe capital budgeting techniques with formulas and examples.