Demand For Bonds Increases In Collin
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State:
Multi-State
County:
Collin
Control #:
US-00415BG
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A Bond is a document with which one party promises to pay another within a specified amount of time. The term "demand" means that the principal plus any interest is due on demand by the bondholder rather than on a specific date. Bonds are used for many things, including borrowing money or guaranteeing payment of money. A bond can be given to secure performance of particular obligations, including the payment of money, or for purposes of indemnification. The validity of a "private" bond, payable upon demand, is determined by the same principles applicable to contracts generally. The purpose of the bond must not be contrary to public policy; it must be supported by a valuable consideration; and there must be a clear designation of the obligor and the obligee. A bond procured through fraud or duress may be unenforceable, but mistake on the part of the obligor as to the contents of a bond, or its legal effect, is not a defense to enforcement of the bond.
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An increase in the demand for bonds A) an increase in both the interest rate and the exchange rate. A. people buy bonds to get rid of money.The increased demand for bonds causes bond prices to fall and interest rates to rise. Learn what investors may see in the coming year in our 2025 outlook for the corporate bond market. When you purchase a bond, you provide a loan to an issuer, like a government, municipality, or corporation. The bonds are payable over 20 years, and the net premium is amortized over the life of the bonds using the straightline method. If a decrease in fees increases total revenues, demand is elastic. If it decreases total revenues, demand is inelastic. Collin County utilizes these types of bonds for funding most types of capital projects with the exception of information technology improvements. As a result, holders of bonds not only earn interest but experience gains or losses in the value of their assets.
