Examlex
Interest rates are determined by the supply and demand for:
Bond
A fixed-income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest and the return of the principal at maturity.
Treasury Bill
Short-term, highly liquid government debt obligation issued at a discount from the face value and returning the face amount at maturity.
Par Value
The nominal value of a security stated by the issuer.
Effective Annual Yield
This refers to the real return on an investment, taking into account the effects of compounding interest over a year.
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