caleb has developed a prototype garlic-peeling device that he hopes to sell to the public. he is having his startup issue securities that offer buyers the promise to pay a specified amount of interest each year plus the principal in five years. caleb is

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26-10-2022
Business

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caleb has developed a prototype garlic-peeling device that he hopes to sell to the public. he is having his startup issue securities that offer buyers the promise to pay a specified amount of interest each year plus the principal in five years. caleb is

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ANKITANAND ANKITANAND · Answer 1 · 2022-10-29T02:21:42-04:00

The promise to pay a specified amount of interest each year plus the principal in five years. - Bonds.

What is interest?
The monetary fee for the privelidge of borrowing money is known as interest. Interest expense or revenue is frequently expressed in monetary terms, whereas the interest rate used it to calculate interest is usually expressed in annual percentage rate(APR). The amount of money received by a lender or financial institution in exchange for lending money is referred to as interest. The amount of ownership a share holder has in a company, usually expressed as a percentage, is also referred to as interest. Interest is indeed the concept of compensating one celebration for taking a risk and foregoing the ability to use funds, while penalising another party for using someone else's funds. The person who is temporarily parting with their money is owed compensation, and the person who is temporarily using those funds is frequently required to pay the above compensation.

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