finance help (1 Viewer)

[jessi90]

does anyone know how CD's and bills of exchange work? my question is: how do banks issue these? they dont just give you a certificate with say $1mill payable at maturity right?

 

[Affinity]

a CD is a essentially a zero coupon bond

and a bill of exchange is roughly like a cheque -> involves 3 parties... the person who writes the bill of exchange (drawer), the person who pays the money (drawee) and the person who receives money (payee).

Here's somehting from wiki which they quoted from some law:

defines a bill of exchange as: 'an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person, or to bearer.