Obligations in Written Form Are Called ______________ and Usually Require

question 28

Short Answer

Obligations in written form are called ______________ and usually require the borrower to pay interest.

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Definitions:

Market Interest Rates

The prevailing rate at which borrowers and lenders agree to conduct transactions in the financial markets.

Market Value

The current price at which an asset or service can be bought or sold in a market.

Bond Prices

The amount of money that buyers are willing to pay for bonds, which inversely correlates with the direction of interest rates.

Par Value

A nominal value assigned to a security or stock as stated in the corporate charter, which bears no relation to market value.