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SS1: ECONOMICS - 3RD TERM

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  1. Mining | Week 1
    3 Topics
    |
    1 Quiz
  2. Financial Institution I | Week 2
    7 Topics
    |
    1 Quiz
  3. Financial Institutions II | Week 3
    5 Topics
    |
    1 Quiz
  4. Financial Institutions III | Week 4
    5 Topics
    |
    1 Quiz
  5. Business Organisation | Week 5
    3 Topics
  6. Money | Week 6
    5 Topics
    |
    1 Quiz
  7. Channels of Distribution I | Week 7
    5 Topics
    |
    1 Quiz
  8. Channels of Distribution II | Week 8
    6 Topics
    |
    1 Quiz
  9. Business Finance | Week 9
    7 Topics
    |
    1 Quiz



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A bond is a debt security issued by a government or its agency or corporate institution as a means of raising funds.  A bond is also a negotiable certificate evidencing indebtedness that the issuer owes the bondholders.

A bond investor lends money to the issuer and in exchange, the issuer promises to repay the loan amount on a specified maturity date.  The most common type of bond is municipal bonds and corporate bonds. The issuer usually pays the bondholder some periodic interest payments over the life of the bond.

Types of Bonds:

(1) Convertible Bonds.
(2) Deep Discount Bonds.
(3)  Bearer Bonds.
(4) Stepped Coupon Bonds.
(5) Commodity Bonds.
(6) Capital Indexed Bonds etc.

Evaluation Questions:

Write short notes on the following;

i. Stocks
ii. Shares
iii. Debentures
iv. Convertible Bond

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Evaluation Questions

Write short notes on the following:

1. Stocks: Stock is the mass of capital of the company which may be transferred in fractions. It is the consolidated shares.

2. Shares: Shares are units of capital and can be transferred in total. A share may be partly paid.

3. Debentures: A debenture is a loan raised by a company through the stock exchange. A debenture bears a fixed rate of interest and is repayable within a fixed period.

4. Convertible Bond: This is government security that matures after ten years and above.

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