BUSI 2160U Lecture Notes - Lecture 6: Ope, Effective Interest Rate
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*bonds are like a bank loan except that you decide the rate and time in which you pay back. Bond is a fixed obligation to pay that is issued by a corporation or government entity to investors. At a fixed rate, cannot earn on this amount: stock can be raised through dividends or by selling it. Bond is a debt security and when you purchase a bond, you are lending money to a government, municipality, corporation, federal agency or other entity known as an issuer. To determine whether a bond is good or not, use credit rating agencies. Future event: lia(cid:271)ilities (cid:455)ou (cid:272)a(cid:374)"t re(cid:272)og(cid:374)ize at all; all you can do is disclose. Ex; student suing the school after bic traumatizes the student because of his horrible teaching skills. Ca(cid:374)"t guess the right (cid:374)u(cid:373)(cid:271)er, date, or (cid:449)hether the la(cid:449)suit has (cid:271)ee(cid:374) (cid:449)o(cid:374) (cid:894)pa(cid:455) (cid:374)othi(cid:374)g(cid:895) or loss (pay something) for the amount (cid:271)ei(cid:374)g sued for.
