| A | B |
|---|
| bond | a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due date. |
| corporate bonds | private corporations borrow money from investors |
| creditor | someone who lends money to an organization by buying a bond |
| discounting | Series EE bought at half its face value; pays face value at end of term |
| maturity rate | aka maturity value; the amount being borrowed by the corporation issuing the bond |
| maturity date | due date for a bond |
| municipal bonds | bonds issued by local and state government; highways, bridges, schools; usually exempt from federal and most state income taxes; |
| treasury bills | aka T-bills; short-term borrowing by US government 91 days – 1 year. |
| treasury bonds | aka T-bonds; long-term borrowing 10 – 30 years |
| treasury notes | aka T-notes; maturities from 1 to 10 years |
| US Savings Bonds | Series EE range from $50 - $10,000; pay interest through discounting; Series HH bonds pay interest twice a year; Series I bonds pay a variable interest rate. |
