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Unformatted text preview: insurance companies). Basics of Debt Instruments debt Instruments promises by a borrower to repay principal plus interest to a lender principal amount of the loan interest fee for using the funds maturity date repayment is due Simple Loan E.g., a 2 year loan of $1000 at 10% interest Discount Bond With a discount bond, the borrower pays the lender the amount of the loan (face or par value) at maturity but receives less than the face value initially....
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- Fall '09
- Personal Finance