Bills and Bomnds Flashcards
1
Q
Bills
A
are short dated loans raised either by the Government (Treasury) or firms (Commercial)
2
Q
Bonds
A
can either be corporate (firms) or a Government bond (gilt). There are a form of long term borrowing and come with a guaranteed amount of interest called coupon.
3
Q
Yield (%)
A
Annual Coupon / Current market Price x 100
