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Money Market instruments, Capital market intruments - Coggle Diagram

- - - - Is a claim on the revenue and assets of the issuing government
- - - - National government, virtually risk-free / low risk
        
        RSA
        
        Characteristics
        
        Principal amount / nominal / par value / face value / redemption value
        
        Coupon or coupon rate = Interest, usually fixed. Zero-coupon = no interest
        
        Term of maturity
        
        Yield at maturity
        
        Required yield = Yield needed to persuade investor to invest
        
        Price quoted = as percentage of par value
        
        Offers a certain guaranteed income and limited capita growth
- - - - Can receive ordinary dividends from the company
        
        Receive dividends after all interest expenses (debentures and other loans) and pref shares have been paid