CURRENT AFFAIRS

Detailed explanation-1: -Treasury bills are money market instruments issued by the Government of India as a promissory note with guaranteed repayment at a later date. Funds collected through such tools are typically used to meet short term requirements of the government, hence, to reduce the overall fiscal deficit of a country.

Detailed explanation-2: -Issue price: The price at which the bond is initially sold to the investor by the issuer. In other words, it is the price at which investors buy them. When the interest rate rises, the issue price will go down. Similarly, the issue price will go up when the bond rates (interest rates) fall.

Detailed explanation-3: -In the simplest words, bond yield is simply the returns that an investor obtains from a bond. In its most basic form, the bond yield would be equal to the coupon rate. You’ll perhaps recall that the coupon rate is the rate at which interest is paid out on a bond.

Detailed explanation-4: -Yield refers to how much income an investment generates, separate from the principal. It’s commonly used to refer to interest payments an investor receives on a bond or dividend payments on a stock. Yield is often expressed as a percentage, based on either the investment’s market value or purchase price.