(a)
Bonds
Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.
To Identify: The monthly interest rate and annual interest rate for loans borrowed by the people from the way of micro financing organizations.
(b)
To Explain: How somebody can pay high rates and still getting benefit from borrowing with high interest rates.
(c)
To Describe: The structure of the typical village savings and loan organizations.
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