Bonds backed by the cash flow of a particular revenue-generating project
Bonds
Securities that represent a debt owed by the issuer to the investor
Bonds
Obligate the issuer to pay a specified amount at a given date, generally with periodic interest payments
Treasury Bonds
Maturity of 10 to 30 years
Secured bonds are ones with collateral attached
General Obligation Bonds
Municipal bonds that do not have specific assets pledged as security or a specific source of revenue allocated for their repayment. Instead, they are backed by the "full faith and credit" of the issuer
Treasury Notes
Maturity of 1 to 10 years
Treasury Bills
Maturity of less than one year
Municipal Bonds
Securities issued by local, county, and state governments
Coupon rate
The rate of interest that the issuer must pay in the periodic interest payment
STRIPS
Zero-coupon securities
Agency issues bond
Bond used to raise funds for purposes that Congress has deemed to be in the national interest
A bond indenture is a contract that states the lender's rights and privileges and the borrower's obligations
Money market is a low risk investment
Treasury Bills
The most widely held and most liquid security
The money markets provide a low-cost source of funds to firms, the government, and intermediaries that need a short-term infusion of funds
Individuals are participants in the money market
Federal Funds
Short-term funds transferred (loaned or borrowed) between financial institutions, usually for a period of one day
Money Market
Entity used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds
