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bill of exchange

bills of exchange
1. finance.
Especially in international trade: a document promising payment of a
specified sum of money, through a mutually convenient third party,
to a certain person on a certain date or when payment is asked for.

What Does Treasury Bill - T-Bill Mean?

A short-term debt obligation backed by the U.S. government with a maturity of
less than one year. T-bills are sold in denominations of $1,000 up to a maximum
purchase of $5 million and commonly have maturities of one month (four
weeks), three months (13 weeks) or six months (26 weeks).

T-bills are issued through a competitive bidding process at a discount from par,
which means that rather than paying fixed interest payments
like conventional bonds, the appreciation of the bond provides the return to the

In finance, a bond is a debt security, in which the authorized issuer owes the
holders a debt and, depending on the terms of the bond, is obliged to
pay interest (thecoupon) to use and/or to repay the principal at a later date,
termed maturity. A bond is a formal contract to repay borrowed money with
interest at fixed intervals.[1]
Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the
lender (creditor), and the coupon is the interest. Bonds provide the borrower with
external funds to finance long-term investments, or, in the case of government
bonds, to finance current expenditure. Certificates of deposit (CDs) or commercial
paper are considered to be money market instruments and not bonds.
Bonds and stocks are both securities, but the major difference between the two is
that (capital) stockholders have an equity stake in the company (i.e., they are
owners), whereas bondholders have a creditor stake in the company (i.e., they
are lenders). Another difference is that bonds usually have a defined term, or
maturity, after which the bond is redeemed, whereas stocks may be outstanding
indefinitely. An exception is a consol bond, which is a perpetuity (i.e., bond with
no maturity).

What Does Debenture Mean?

A type of debt instrument that is not secured by physical asset or
collateral. Debentures are backed only by the
general creditworthiness and reputation of the issuer. Both corporations and
governments frequently issue this type of bond in order to secure capital. Like
other types of bonds, debentures are documented in an indenture.

savings certificate

Receipt issued by a savings institution (bank, building society, credit union, etc.)
to certify the ownership of a fixed or time deposit. Among
other items of information, it shows the account holder's name,
applicable interest rateor scheme, amount deposited, and maturity date.